NGL Energy Partners (NGL) investor relations material

Executive summary

• Continuing-operations Adjusted EBITDA rose 15% YoY to $192.358 million; a $58.142 million asset impairment contributed to a $42.581 million continuing-operations net loss.

• Water Solutions led performance, with produced-water volumes up 22.9% YoY; FY2027 Adjusted EBITDA guidance increased to $735–$745 million.

• Management’s priorities include reducing Class D Preferred Units and leverage, advancing toward a pure-play water business, and eventually reinstating common-unit distributions.

Financial highlights

• Q2 revenue was $986.553 million versus $674.677 million YoY; operating income was $23.925 million versus $94.251 million.

• Net loss attributable to limited partners was $44.251 million versus income of $29.284 million; diluted loss per common unit was $0.51 versus income of $0.02.

• H1 continuing-operations Adjusted EBITDA was $378.576 million versus $311.305 million; continuing-operations cash from operations was $171.548 million versus $58.160 million.

• H1 distributable cash flow was $172.0 million versus $102.9 million.

Outlook and guidance

• FY2027 Adjusted EBITDA guidance rose by $10 million to $735–$745 million; growth CapEx guidance increased to $250–$270 million, with $45 million of maintenance CapEx expected.

• Growth CapEx is front-loaded, expected to contribute about one quarter’s EBITDA in FY2027, with most benefit in FY2028; management expects continued FY2028 EBITDA growth but issued no FY2028 guidance.

• Water Solutions was more than $20 million above budget in H1; guidance increases reflected current results, while new contracts are incorporated as they generate EBITDA.

• LEX II was expected in service by calendar year-end 2026, adding 165,000 barrels/day and bringing system capacity to ~560,000 barrels/day, with expansion potential to 650,000 barrels/day.