NGL Energy Partners LP (NGL) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

the end of the fiscal year and approximately four times leverage. Also, in the month of October, our water solution segment has averaged over 3 million barrels per day of physical disposal volume. Doug White, EVP of our water solution segment, will be providing a water solutions update following my comments. We continue to be focused on our capital structure and remain opportunistic with how we are addressing it. Since April, we have purchased 88,506 units of the Class D preferred. which represents approximately 15% of the outstanding units. Based on the last Class D distribution, the Class Ds purchased represent $10.4 million in annual distribution savings going forward. We have opportunistically taken advantage of the ability to reprice our term loan B as permitted in the documents. In September, we launched a repricing and reduced the SOPR margin from 375 basis points to 350 basis points. This was the second repricing of the Term Loan B since February 2024. When you consider the two repricings and Fed rate cuts, we have achieved annual interest savings of $15 million on the Term Loan B. Under the Board Authorized Unit Repurchase Plan, we have purchased an additional 4.4 million units in the quarter, for a total of approximately 6.8 million units, which equates to about 5% of the outstanding units. The average price for the units repurchased since the inception of the plan is $4.57. With the additional water growth capital projects and the Class D preferred and common unit repurchases, we are demonstrating the optionality we have with our capital allocation. All three of these provide attractive returns to the partnership and our investors. Water Solutions adjusted EBITDA was $151.9 million in the second quarter, versus 128.9 million in the prior second quarter, an...