NGL Energy Partners LP (NGL) Q1 2026 Earnings Call

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WEBVTT 00:00:00.000 -- 00:00:03.960 from this segment occurs in the back half of the fiscal year. 00:00:03.960 -- 00:00:08.520 With that, I would now like to turn the call over to our CEO, Mike Krimble. 00:00:08.520 -- 00:00:12.680 Thanks, Brad. Good afternoon. I have just some brief comments. 00:00:12.680 -- 00:00:17.840 With respect to the first quarter results, as Brad said, we have exceeded our expectations. 00:00:17.840 -- 00:00:23.060 Water Solutions experienced a strong quarter, continues to reduce its cost per barrel. 00:00:23.060 -- 00:00:27.040 We expect strength in the back half of the year from our crude oil logistics segment 00:00:27.040 -- 00:00:32.720 as volumes on Grand Mesa ramp up. The remaining liquid logistics 00:00:32.720 -- 00:00:38.540 business generates enough adjusted EBITDA to cover our corporate costs. 00:00:38.540 -- 00:00:42.680 If our results continue to exceed expectations, we will consider raising guidance at 00:00:42.680 -- 00:00:47.340 the time of our second quarter earnings call in early November. 00:00:47.340 -- 00:00:52.240 Now, as you can see from our first quarter actions, we are exercising an opportunistic 00:00:52.240 -- 00:00:55.740 strategy with regards to the use of our free cash flow. 00:00:55.740 -- 00:01:00.780 Cash is being used to purchase, repay debt and equity that provides the highest return 00:01:00.780 -- 00:01:06.060 and greatest benefit to the partnership while considering liquidity and leverage. 00:01:06.060 -- 00:01:11.320 These opportunities may change as the markets continue to move. 00:01:11.320 -- 00:01:16.380 So first, during the quarter, we purchased 19 million of our outstanding 2032 notes at 00:01:16.380 -- 00:01:21.700 a discount as our bond prices temporarily declined due to the tariff announcement i...