NGL Energy Partners LP (NYSE:NGL) Q3 2023 Earnings Conference Call February 9, 2023 5:30 PM ET
Company Participants
Brad Cooper - EVP and CFO
Mike Krimbill - CEO
Kurston McMurray - General Counsel
Doug White - EVP, Water Solutions
Jeff Pinter - EVP, Liquids Logistics
Don Robinson - EVP, Crude Oil Logistics
Conference Call Participants
Patrick Fitzgerald - Baird
Tarek Hamid - JPMorgan
Gregg Brody - Bank of America
Ned Baramov - Wells Fargo
Jason Mandel - RBC
Operator
Greetings. Welcome to the NGL Energy Partners LP 3Q '23 Earnings Call. [Operator Instructions] Please note, this conference is being recorded.
I will now turn the conference over to your host, Brad Cooper. You may begin.
Brad Cooper
Thank you. Good afternoon, and thank you to everyone for joining us on the call this afternoon. After the market closed today, we issued an earnings release, investor presentation and filed our Q. Comments today will include plans, forecasts and estimates that are forward-looking statements under the U.S. 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 filings and earnings materials.
Let's get into the quarterly results. With three quarters in the books, fiscal '23 is coming to fruition, and we are extremely happy with what we are seeing. The plan that Mike outlined to employees in the spring of '22 and communicated externally on the fourth quarter call of fiscal '22 is becoming a reality. As we enter the home stretch of this fiscal year, I want to thank all of our employees for their hard work and tenacity to get us to this very exciting spot for the company.
We're increasing our Water Solutions adjusted EBITDA guidance from over $430 million to over $440 million for fiscal '23. This strong performance out of Water and the return of working capital has us to lean into the repurchasing of our '23 unsecured notes over the last few quarters.
We started this fiscal year with an outstanding balance of $476 million on the '23 notes. At the end of the third quarter, the balance in the '23 notes was $302 million, and during the first few weeks of January, we retired an additional $100 million of the '23 notes, leaving a current balance of $203 million. This is a significant progress in reducing the balance on these notes, and our plan is to fully retire the remaining balance no later than June 30 while maintaining our strong liquidity position to run all of our businesses.