NGL Energy Partners LP Common Units. (NYSE:NGL) Q2 2025 Earnings Conference Call November 12, 2024 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
Doug White - Executive Vice President, Water Solutions
Conference Call Participants
Ned Baramov - Wells Fargo
Operator
Greetings. Welcome to the NGL Energy Partners Second Quarter 25 Earnings Call Conference Call. At this time all participants are in a listen only mode. 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. You may begin.
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.
Consolidated Adjusted EBITDA came at $147.3 million for the second quarter. The consolidated Adjusted EBITDA was primarily driven by our Water Solutions and Crude Logistics segments.
The butane blending season began after the quarter ended and wholesale propane is dependent on winter weather and heating demand as you are very well aware and should contribute to the third and fourth quarter's results. In early August, under the terms of the Term Loan B agreement, we repriced and amended the SOFR margin from 450 basis points to 375 basis points which reduces our interest expense by approximately $5.25 million per year.
On September 19th, the Board of Directors of our General Partnership declared a quarterly distribution for the preferred Class B, C&D's that was paid on October 15th. The LEX II expansion project with initial capacity of 200,000 barrels per day that is expandable to 500,000 barrels per day, was placed in service in October on time.
As we've mentioned on previous calls, this project is fully underwritten by a minimum volume commitment with an investment grade producer. We are excited to have completed this project as it consumed much of our free cash flow over the last six months. I want to thank the folks in the field for the great work executing this project in a timely fashion.