NGL Energy Partners LP Q2 FY2025 earnings call

• Consolidated Adjusted EBITDA was $147.3 million in Q2, driven by Water Solutions and Crude Logistics. - Repriced Term Loan B agreement, reducing interest expense by ~$5.25 million per year. - LEX II expansion project placed in service in Oct. - Purchased 92% of Class D warrants, eliminating ~18% dilution. - Mike mentioned first half EBITDA in line with expectations, reducing full-year EBITDA guidance to $640M-$650M. - Pursuing asset sales in liquids logistics and smaller asset sales. - Close to signing additional producers on Grand Mesa in crude oil logistics. - Water Solutions as growth engine, expanded out-of-basin capacity. - Began common unit buyback program.

Water Solutions: Adjusted EBITDA was $182.9 million in Q2. Physical water disposal volumes were 2.68 million barrels per day in Q2 vs 2.47 million in Q1 (9% QoQ increase). Total volumes paid to dispose of were 2.77 million barrels per day in Q2 vs 2.59 million in Q1 (7% QoQ increase). Expenses in Q2 were $0.22 per barrel vs $0.24 per barrel in Q1. Crude Oil Logistics: Adjusted EBITDA was $17.3 million in Q2 2025 vs $18.6 million in Q1. Crude oil sales averaged ~63,000 barrels per day. Liquids Logistics: Adjusted EBITDA was $9.4 million in Q2 vs $17.1 million in prior Q2. Butane blending performing above expectations, others underperformed.

• Reduced full-year EBITDA guidance to $640 million to $650 million (2% to 4% reduction). - Pursuing asset sales in liquids logistics and smaller asset sales. - Close to signing additional producers on Grand Mesa in crude oil logistics to increase volumes by start of next fiscal year.

• Warm weather and lower crude oil prices could impact second half. - Butane blending performing above expectations but other liquids logistics businesses underperformed. - Warrant purchase details and potential future dilution if remaining warrants not addressed.

Q: How are conversations going with customers regarding the outlook for calendar 2025?

A: Doug White on water business: Active in Delaware, DJ, and Eagle Ford basins contracting new volumes for 2025 and beyond.

Q: Latest on expectations for water EBITDA and total CapEx for fiscal 2025?

A: Water guide still 550 to 560 intact, total CapEx unchanged at 210.

Q: What triggered warrant purchase and plans for remaining warrants?

A: Triggered by EIG selling Class D position, offered to repurchase remaining warrants at same price and waiting to hear back.