NGL Energy Partners LP (NYSE:NGL) Q1 2024 Earnings Conference Call August 9, 2023 5:30 PM ET
Company Participants
Brad Cooper - EVP & CFO
Michael Krimbill - President, CEO, & Director
Douglas White - EVP, NGL Water Solutions
Conference Call Participants
Sunil Sibal - Seaport Research Partners
Operator
Greetings, and welcome to the NGL Energy Partners 1Q 2024 Earnings Call. At this time all participants are in a listen-only mode and a question-and-answer session will follow the formal presentation. [Operator Instructions]. Please note this conference is being recorded.
I will now turn the conference over to your host, Brad Cooper, CFO of NGL Energy Partners. Brad, you may begin.
Brad Cooper
Good afternoon. And thank you to everyone for joining us on the call today. After the market close today, we issued an earnings release, investor presentation and filed our 10 Q.
Comments today will include plans, forecasts and estimates that are forward-looking statements under the US Securities Law. These comments are subject to assumptions, risks and uncertainties that could cause actual results to differ from the forward-looking statements. Please take note of the cautionary language and risk factors provided in our SEC filing and earnings materials.
With that, let's get into the quarterly results. We have continued our momentum from fiscal 2023 into the first quarter of fiscal 2020. Our Water Solutions business is on pace for another record year of adjusted EBITDA and disposal volumes with $123.2 million in adjusted EBITDA for the quarter. We are reaffirming our full year consolidated adjusted EBITDA guidance of $645 million plus.
We are getting more capital efficient by spending less growth capital this year. And we are increasing our monetization guidance by 50% from $50 million to $75 million, thus increasing our free cash flow for the year. Our strategy to reduce absolute debt and leverage continues as we purchased 99.3 million of the 2025 unsecured notes early in the quarter, and reduced total leverage to 4.4 times at the end of the first quarter. As discussed on our last earnings call all the free cash flow this fiscal year will go straight to the balance sheet and will allow us to pay off the 2025 unsecured notes no later than March 31 2024.
Our liquidity remains strong for this time of year. Recall earlier this year, we permanently extended our ABL commitment to $600 million through the life of the ABL. As of 6/30, we had approximately $286 million of liquidity and $180 million of volumes on the ABL. With our continued strong operational performance and the hard work of the entire company over the last two years, we have line of sight to leverage under four times at the end of fiscal '24. This leverage level will have us position for a global refinancing in the first half of calendar 2024.