NGL Energy Partners LP Q1 FY2026 earnings call

• Closed sale of Rack marketing business, Limestone Ranch interest, and majority of wholesale propane business. - Paid down ABL and used proceeds to attack other capital structure pieces. - Consolidated adjusted EBITDA up 4% driven by Water Solutions. - Water Solutions continues to perform above expectations; reaffirmed full-year adjusted EBITDA guidance. - Crude Oil Logistics expects stronger quarters ahead as volumes on Grand Mesa pipeline anticipate increase. - Liquids Logistics generates EBITDA to cover corporate costs. - Opportunistically used free cash flow to purchase $19M of 2032 notes, pay off $17M ABL debt, repurchase 70,000 Class D preferred units, and buy ~4.7M common units.

Consolidated adjusted EBITDA for Q1 '26 was $144 million, up ~4% from prior year. Water Solutions: adjusted EBITDA $142.9 million in Q1 '26 vs $125.6 million in prior year Q1, 13.8% increase. Physical water disposal volumes 2.77 million bpd vs 2.47 million bpd (12.4% increase). Total volumes paid to dispose 3.1 million bpd vs 2.6 million bpd (18% increase). Crude Oil Logistics: adjusted EBITDA $9.6 million in Q1 '26 vs $18.6 million in prior year Q1, decrease due to lower production and prices. Liquids Logistics: adjusted EBITDA $2.9 million in Q1 '26 vs $5.7 million in prior year Q1, adjusted for asset sales.

• Reaffirmed full-year adjusted EBITDA guidance of $615 million to $625 million. - Will reevaluate full-year guidance after Q2 closes. - If results exceed expectations, may raise guidance at Q2 earnings call in early November.

• Oil price uncertainty and macro backdrop could impact Water Solutions segment.

Q: Do you expect further common unit repurchases or will focus be on Class Ds?

A: Will continue to be opportunistic; will nibble at common units if prices stay similar and at bonds if they trade down, and continue attacking Class Ds.

Q: Thoughts on produced water volumes being lighter than expected?

A: Some recycling jobs ramped up in June, volumes on takeaway side seen this quarter; came in ~79,000 bpd over internal budget for Q1 and expect continuation. Also, financial volumes and future MVC volumes not all recorded in current quarter.

Q: Thoughts on Ares acquisition by Western?

A: Congratulate Ares on premium price; model is different as NGL doesn't focus on recycling; consolidation in Delaware water industry is positive for efficiency and reducing duplicate CapEx