NGL Energy Partners LP Common Units (NYSE:NGL) Q1 2025 Earnings Conference Call August 8, 2025 5:00 PM ET

Company Participants

Brad Cooper - Executive Vice President and Chief Financial Officer, NGL Energy Partners LP
Michael Krimbill - Chief Executive Officer, NGL Energy Partners LP
David Sullivan - Vice President Finance, NGL Energy Partners LP

Conference Call Participants

Sunil Sibal - Seaport Research Partners
Patrick Fitzgerald - Baird
Jason Mandel - RBC Capital Markets

Operator

Thank you for standing by. My name is Max and I will be your conference operator for today. At this time, I would like to welcome everyone to NGL Energy Partners First Quarter 2025 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. [Operator Instructions]. Thank you.

I would now like to turn the call over to Brad Cooper, CFO. Please go ahead.

Brad Cooper

Good afternoon, and thank you to everyone for joining us on the call today. Our 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 presentation materials and our other public disclosure materials.

Let's get into the quarterly results. Our results for the quarter were strong across all three business units. Water Solutions, Crude Oil Logistics, and Liquids Logistics all met or beat our internal expectations.

Consolidated adjusted EBITDA for the quarter came in at $144.3 million in the first quarter. I'm happy to report the performance from the first quarter has carried over to the start of our second quarter. The butane blending season will begin soon, while wholesale propane is dependent on winter weather and heating demand, as you are very well aware. The Water Solutions segment continues to perform quite well with physical disposal volumes averaging approximately 2.7 million barrels per day in the month of July. When you include deficiency volumes in July, we will be paid on approximately 3 million barrels per day.

As mentioned on our year-end call in early June, we also achieved other non-operational milestones during the quarter. First, we announced the sale of two ranches in Eddy and Lea Counties for a total of approximately $70 million. Second, on April 25th, we made our last arrearage payment on the preferred Class B, C, and Ds. This made us current on all preferred classes. On June 21, the Board of Directors of our general partner declared a quarterly distribution for the preferred Class B, C and Ds that was paid on July 15th.