The following is a summary of the NGL Energy Partners LP Common Units (NGL) Q2 2025 Earnings Call Transcript:

Financial Performance:

• Consolidated Adjusted EBITDA for Q2 was $147.3 million, mainly driven by Water Solutions and Crude Logistics segments.

• Repricing of SOFR margin reduced annual interest expenses by approximately $5.25 million.

• Liquids Logistics segment's EBITDA in Q2 2025 declined compared to the previous year, specifically highlighting underperformance in areas except the butane blending business.

Business Progress:

• The LEX II expansion project, with an initial capacity of 200,000 barrels per day expandable to 500,000 barrels per day, successfully completed and operational as of October.

• Acquisition agreements for 92% of the outstanding warrants from Class D unitholders were adjusted, averting an 18% potential dilution event.

• Ongoing expansion in handling water solutions, particularly in the Delaware Basin, and continuous optimization in operations.

• Planned strategic asset sales in the liquids logistics segment and acquisitions in crude oil logistics promising increased volumes.

Opportunities:

• Expanded capacity of the LEX II project provides significant opportunities for revenue growth and solidifies a partnership with an investment-grade producer.

• The restructuring and repurchase of warrants align with long-term financial engineering goals, minimizing future dilution risks and potentially enhancing shareholder value.

Risks:

• The revised downward EBITDA forecast for the fiscal year due to external factors such as warm weather impacting propane demand indicates potential revenue volatility.

• Operational challenges in maintaining and expanding crude oil production amid fluctuating oil prices.

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