Core Viewpoint - NGL Energy Partners LP has announced its quarterly cash distribution for Class B, Class C, and Class D preferred units, indicating a commitment to returning value to its investors [1] Group 1: Cash Distribution Details - The company has declared a cash distribution of $0.4375 per Class B preferred unit [1] - For Class C preferred units, the cash distribution is set at $0.515625 per unit [1] - Class D preferred units will receive a cash distribution of $0.515625 per unit as well [1]

Core Viewpoint - Texas is set to implement a solution for the oil industry's wastewater issue, which poses its own environmental risks [1] Group 1: Regulatory Developments - State regulators are preparing to issue permits for four companies, including Texas Pacific Land Corp. and NGL Energy Partners LP, to release treated wastewater from the Permian Basin into the Pecos River, with potential approvals as early as Q1 2026 [2] - The Texas Commission on Environmental Quality (TCEQ) stated it will not permit discharges that threaten aquatic life, violate water quality standards, or endanger human health [8] Group 2: Wastewater Generation and Treatment - The Permian Basin generates 21 million barrels per day of wastewater, which contains salt, chemicals, and heavy metals, primarily disposed of by underground injection [3] - Proposed treatment plants aim to clean wastewater for surface discharge, potentially reducing underground disposal and providing water for irrigation and cooling [4][10] - The cost of treating wastewater is significantly higher than underground disposal, estimated at $2 to $3 per barrel compared to 65 cents to $1.50 for injection [13] Group 3: Industry Response and Innovations - Texas Pacific is pursuing a pilot project to treat 10,000 barrels a day, which could address environmental issues and create a new revenue stream [15] - Other major companies like Exxon Mobil, Chevron, and ConocoPhillips are also exploring wastewater treatment technologies to reduce salt content and repurpose the water for industrial and agricultural uses [20][21] Group 4: Agricultural and Industrial Applications - Treated wastewater could be utilized for agricultural purposes, with pilot projects testing its application on crops like alfalfa and cotton [24] - Data center developers are potential customers for treated wastewater, as it could be used for cooling equipment [23] Group 5: Public Perception and Environmental Concerns - There is skepticism regarding the safety of treated wastewater, with concerns about its impact on ecosystems and human health [27][28] - Environmental advocates emphasize the need for thorough testing before allowing treated wastewater to be discharged into rivers [28]

Core Insights - NGL Energy Partners LP (NGL) has shown impressive improvement in business performance and significant progress in debt reduction [1] Group 1: Business Performance - The company has made notable advancements in its operational metrics, indicating a positive trend in its overall business performance [1] Group 2: Debt Management - NGL has achieved great progress in reducing its debt levels, which is a critical factor for enhancing financial stability and investor confidence [1]

Core Insights - Two stocks in the energy sector, Transocean LTD and NGL Energy Partners LP, are identified as potentially overbought based on their momentum indicators, specifically the RSI values exceeding 70 [1][2]. Company Performance - **Transocean LTD (NYSE:RIG)**: - Reported better-than-expected third-quarter earnings and revenue on October 29, 2025 - Achieved a reduction in total debt by approximately $1.2 billion by the end of 2025, with an annual interest expense reduction of about $83 million and restricted cash reduction of $52 million - Stock gained around 15% over the past month, reaching a 52-week high of $4.45 - RSI Value: 71.1, with shares closing at $4.30 after a 6.2% increase [3][7]. - **NGL Energy Partners LP (NYSE:NGL)**: - Reported better-than-expected second-quarter sales results on November 4, 2025 - Projecting Fiscal 2027 Adjusted EBITDA in excess of $700 million, driven by growth in the Water Solutions business and strategic equity redemption - Stock gained around 53% over the past month, reaching a 52-week high of $10.29 - RSI Value: 71.8, with shares closing at $9.85 after a 4.5% increase [4][7].

Core Insights - NGL Energy Partners has experienced a significant increase in unit prices due to substantial growth in its water solutions segment, which has become a central focus for the company [1] Company Summary - The water solutions segment has been pivotal for NGL Energy Partners, contributing to the recent rise in unit prices [1] Industry Context - The financial markets are characterized by active sectors such as technology, particularly SaaS and cloud businesses, which present considerable growth opportunities [1]

Financial Data and Key Metrics Changes - Consolidated Adjusted EBITDA from continuing operations increased to $167.3 million in Q2 2026, up from $149.4 million in Q2 2025, representing a 12% increase [2][3] - Full-year Adjusted EBITDA guidance was raised from $615-$625 million to $650-$660 million [3] - Operating cash flow projections indicate a zero ABL balance at the end of the fiscal year with approximately four times leverage [3] Business Line Data and Key Metrics Changes - Water Solutions Adjusted EBITDA rose to $151.9 million in Q2 2026, compared to $128.9 million in Q2 2025, an 18% increase [5] - Physical water disposal volumes averaged 2.8 million barrels per day in Q2 2026, up from 2.68 million barrels per day in Q2 2025, a 4% increase [5] - Total volumes paid for disposal increased to 3.15 million barrels per day in Q2 2026 from 2.77 million barrels per day in Q2 2025, a 14% increase [5] Market Data and Key Metrics Changes - Grand Mesa pipeline volumes averaged approximately 72,000 barrels per day in Q2 2026, compared to 63,000 barrels per day in the previous quarter [7] - October volumes for the fiscal third quarter exceeded 80,000 barrels per day [8] Company Strategy and Development Direction - The company is focusing on capital structure optimization and has repurchased approximately 6.8 million units under its unit repurchase plan, equating to about 5% of outstanding units [4] - NGL aims to become a pure play water company, with significant growth expected from water operations [16][17] - The company has secured new growth capital projects for approximately 750,000 barrels per day of newly contracted volume commitments, scheduled for service by the end of the calendar year [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the water solutions segment, citing strong performance and increased customer commitments [12][13] - The company anticipates adjusted EBITDA for fiscal 2027 to be at least $700 million, driven by new projects [13] - Management highlighted the importance of maintaining a strong balance sheet and reducing leverage to less than four times [17] Other Important Information - The company has achieved annual interest savings of $15 million on its term loan B due to repricing and Fed rate cuts [4] - NGL has the largest capacity pipeline system in the Delaware Basin, with over 800 miles of pipeline [10] Q&A Session Summary Question: Can you provide insights on the macro and micro events leading to increased customer acquisition? - Management noted that growth is driven by larger producers' commitment to infrastructure improvements and economic efficiencies [21][23] Question: What is the capital required to access the pore space in Andrews County? - Management indicated that projects to access pore space would range from $50 million to $150 million, paced over several years [24] Question: Is the increase in growth capital primarily for drilling SWD wells? - Management confirmed that the additional capital is related to growth in the water side of the business [25] Question: How many new SWD wells are planned? - Management stated they have 35 to 45 legacy permits and are in the process of drilling 15 to 20 new wells this fiscal year [26]

$16.55 MM 85% 9% 6% Liquids Logistics NGL Total EBITDA by Segment $178.97 MM(1) $151.90 MM 85% 9% 6% Investor Presentation November 2025 NYSE: NGL Company Overview Water Solutions Crude Oil Logistics 85% 1. EBITDA values reflect Q2 Fiscal 2026 and does not include corporate or discontinued operations 2 $10.52 MM 9% 6% ▪ Provides water transportation, treating, recycling, and handling services for upstream customers ▪ Largest integrated water solutions network of injection wells and large diameter pipe in th ...

Financial Results - NGL Energy Partners LP reported a net income from continuing operations of $29.8 million for the second quarter of Fiscal 2026, compared to $7.5 million for the same period in Fiscal 2025 [6] - Adjusted EBITDA for the second quarter of Fiscal 2026 was $167.3 million, an increase from $149.4 million in the second quarter of Fiscal 2025 [6] - Total revenues for the quarter ended September 30, 2025, were $674.7 million, down from $756.5 million in the prior year [23] Water Solutions Segment - Operating income for the Water Solutions segment increased by $19.5 million to $92.4 million for the quarter ended September 30, 2025, driven by higher disposal revenues and increased water pipeline revenue [5][6] - The Partnership processed approximately 2.80 million barrels of produced water per day during the quarter, a 4.5% increase from 2.68 million barrels per day in the same quarter of the previous year [5][6] - Paid and physically disposed water volumes grew by 14% to 3.15 million barrels per day in the second quarter of Fiscal 2026 [6] Crude Oil Logistics Segment - Operating income for the Crude Oil Logistics segment decreased by $6.6 million to $8.2 million for the quarter ended September 30, 2025, primarily due to reduced gains on derivatives [10] - Physical volumes on the Grand Mesa Pipeline averaged approximately 72,000 barrels per day, an increase from 63,000 barrels per day in the prior year [10] Liquids Logistics Segment - Operating income for the Liquids Logistics segment increased by $3.7 million to $6.3 million for the quarter ended September 30, 2025, attributed to lower expenses related to the sale of the Wholesale Propane business and increased margins [11] Guidance Update - NGL increased its consolidated Adjusted EBITDA guidance for Fiscal 2026 to a range of $650 million to $660 million, up from the previous range of $615 million to $625 million [6] - The company expects Fiscal 2027 Adjusted EBITDA to exceed $700 million, supported by new contracts executed for over 500,000 barrels per day of produced water disposal [6] Capitalization and Liquidity - Total liquidity as of September 30, 2025, was approximately $359.1 million, with borrowings on the asset-based revolving credit facility totaling approximately $71.0 million [12] - The Partnership is in compliance with all debt covenants and has no upcoming debt maturities [12]

Core Viewpoint - Targa Resources Corp. is advancing several organic growth projects to enhance NGL and natural gas production in the Permian Basin, addressing customer infrastructure needs [1][2][3]. Group 1: New Projects - Targa plans to construct the Speedway NGL Pipeline, a ~500-mile pipeline with an initial capacity of ~500 MBbl/d, expandable to 1,000 MBbl/d, expected to be operational by Q3 2027 at an estimated cost of $1.6 billion [2]. - The company is also building the Yeti gas processing plant with a capacity of 275 MMcf/d, expected to be in service by Q3 2027, as part of five new gas processing plants in the Permian with a total capacity of 1.4 Bcf/d [3]. - A new 35-mile natural gas pipeline and a 55-mile conversion of an existing pipeline into natural gas service, collectively known as Buffalo Run, will enhance connectivity across Targa's plants and is expected to be completed by early 2028 [4]. Group 2: Financial Outlook - Targa estimates total net growth capital expenditures for 2025 to be around $3.3 billion, which includes costs for the Speedway pipeline and long-lead items for the Yeti plant [5]. - The company anticipates significant volume growth in 2026, supported by ongoing projects and a favorable industry trend of rising gas-to-oil ratios in the Permian Basin [6]. Group 3: Company Overview - Targa Resources Corp. is a leading midstream service provider and one of the largest independent infrastructure companies in North America, focusing on the efficient delivery of energy [8]. - The company operates a diversified portfolio of assets that connect natural gas and NGLs to both domestic and international markets, catering to the growing demand for cleaner fuels [8].

Core Insights - NGL Energy Partners LP (NYSE:NGL) experienced an 8.91% decline in share price from September 18 to September 25, 2025, making it one of the energy stocks that lost the most during that week [1] - The company is a diversified midstream MLP providing services such as transportation, storage, blending, and marketing of crude oil, NGLs, refined products/renewables, and water solutions [2] - A recent investment by director James Collingsworth, who purchased 100,000 shares valued at approximately $580,000, indicated confidence in the company's future, which initially boosted investor sentiment [3] - Despite the recent share price drop, NGL stock has increased by nearly 37% over the past six months, suggesting a strong performance trend prior to the decline [4]