NGL Energy Partners LP Common Units (NGL) Q1 2027 Earnings Call Transcript

Operator

Greetings. Welcome to the NGL Energy Partners 1Q ’27 Earnings Call. [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
Executive VP, Compliance Officer & CFO of NGL Energy Holdings LLC

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.

We are pleased to report a strong start to fiscal 2027 and continued execution on our multiyear strategy of deleveraging the balance sheet through high-return water growth projects. This positions the partnership to continue to address the Class D preferreds later this fiscal year.

During the first quarter, we hit record produced water volumes, physically disposing of approximately 3.32 million barrels per day during the first quarter, growing 19.6% from the first quarter of fiscal 2026. The record water volumes also generated record Water Solutions adjusted EBITDA for a single quarter.

We are seeing the growth capital spend and