Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA from continuing operations for Q4 was $176.8 million, up approximately 20% from $147.9 million in the prior year [6] - Full year adjusted EBITDA from continuing operations was $622.9 million, exceeding previous guidance of $620 million [7] Business Line Data and Key Metrics Changes - Water Solutions adjusted EBITDA for Q4 was $154.9 million, compared to $123.4 million in the prior year [7] - Physical water disposal volumes increased to 2.73 million barrels per day in Q4 from 2.39 million barrels per day in the prior year [8] - Crude Oil Logistics adjusted EBITDA decreased to $13.1 million in Q4 from $15.3 million in the prior year, primarily due to lower volumes on the Grand Mesa pipeline [10][11] - Liquids Logistics adjusted EBITDA was $17.7 million in Q4, down from $22.2 million in the prior year [12] Market Data and Key Metrics Changes - Total volumes paid for disposal increased by 11% in Q4 compared to the same quarter of the previous year [8] - Operating cost per barrel for fiscal 2025 was $0.22, down from $0.24 in fiscal 2024 [9] Company Strategy and Development Direction - The company is focusing on core assets after divesting non-core businesses, which will reduce volatility and seasonality of adjusted EBITDA [5] - Plans to continue reducing leverage and improve capital structure by addressing Class D Preferred Units [6][19] - The company aims to generate approximately 85% of adjusted EBITDA from the Water Solutions segment moving forward [16] Management's Comments on Operating Environment and Future Outlook - Management noted that despite oil price uncertainty, there has been no drop-off in customer activity in the Corita Basin [10] - The company is well-positioned with 90% of volumes committed through acreage dedications and MVCs, with 80% of total volumes from investment-grade counterparties [10] - Future growth is expected in the Water Solutions segment, with guidance for fiscal 2026 adjusted EBITDA between $615 million and $625 million [12] Other Important Information - The company completed the sale of 18 natural gas liquids terminals and other non-core assets, raising $270 million [4][16] - The biodiesel business has been fully wound down, eliminating approximately $75 million of working capital [5] Q&A Session Summary Question: Can you offer more color on your expectations by business for 2026 guidance? - Management explained that the water guidance midpoint implies about $560 million, accounting for a $20 million decline in skim oil revenues due to lower crude prices [21][22] Question: What are the conversations with customers regarding growth opportunities? - Management indicated that they are recontracting and focusing on core customers, with no slowdown in volumes currently observed [27][29] Question: How much lower could you flex capital spending down? - Management stated that capital expenditures are already low and further reductions may not be significant [35][37] Question: How do you think about your low and high range on volumes for the water business? - Management noted that fluctuations in volumes are normal, with a strong base wedge of business and no significant changes expected from customers [40][46] Question: Will there be a reinstatement of common unit distributions? - Management clarified that there are no plans for near-term distributions as the focus is on reducing Class D preferred units [52][54]

Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA from continuing operations for Q4 was $176.8 million, up approximately 20% from $147.9 million in the prior year [5] - Full year adjusted EBITDA from continuing operations was $622.9 million, exceeding previous guidance of $620 million [6] Business Line Data and Key Metrics Changes - Water Solutions adjusted EBITDA for Q4 was $154.9 million, compared to $123.4 million in the prior year [6] - Physical water disposal volumes increased to 2.73 million barrels per day in Q4 from 2.39 million barrels per day in the prior year [6] - Crude Oil Logistics adjusted EBITDA decreased to $13.1 million in Q4 from $15.3 million in the prior year, primarily due to lower volumes on the Grand Mesa pipeline [8][9] - Liquids Logistics adjusted EBITDA was $17.7 million in Q4, down from $22.2 million in the prior year [10] Market Data and Key Metrics Changes - Total volumes paid for disposal increased by 11% in Q4 compared to the same quarter of the previous year [6] - Operating cost per barrel for Water Solutions was $0.22 for fiscal 2025, down from $0.24 in fiscal 2024 [7] Company Strategy and Development Direction - The company is focusing on core assets after completing non-core asset sales, which will reduce volatility and seasonality of adjusted EBITDA [4] - The strategic shift towards becoming more of a water solutions business, with approximately 85% of adjusted EBITDA expected to come from this segment [14] - Plans to continue reducing leverage and improving capital structure by addressing Class D preferred units [16] Management's Comments on Operating Environment and Future Outlook - Management noted that despite oil price uncertainty, there has been no drop-off in customer activity in the Corita Basin [8] - The company is well-positioned with 90% of volumes committed through acreage dedications and MVCs, with 80% of total volumes from investment-grade counterparties [8] - Future guidance for fiscal 2026 is an adjusted EBITDA of $615 million to $625 million, with total capital expenditures of $105 million [10] Other Important Information - The company completed the sale of 18 natural gas liquids terminals and other non-core assets, raising $270 million [4][14] - The wind down of the biodiesel business has been completed, eliminating significant working capital requirements [4] Q&A Session Summary Question: Can you offer more color on your expectations by business for 2026 guidance? - Management explained that the water guidance midpoint implies about $560 million, accounting for a $20 million decline in skim oil revenues due to lower crude prices and less than $10 million in asset sales not included in future EBITDA [18][19] Question: What are the conversations with customers regarding growth opportunities? - Management indicated that they are recontracting expiring long-term contracts and have seen growth through existing agreements, with no slowdown in volumes currently [20][25] Question: How much lower could capital spending go? - Management stated that while there might be slight flexibility, capital expenditures are already low, primarily focused on water [33][34] Question: How do you view variability in water volumes for the year? - Management noted that while there can be fluctuations based on customer completions, they have a strong base and are currently ahead of budget for the first quarter [37][41] Question: Will there be a reinstatement of common unit distributions? - Management clarified that there are no plans for near-term distributions as the focus is on addressing Class D preferred units and reducing leverage [50][51]

Financial Performance & Asset Sales - NGL's non-core asset sales announced in May 2025 totaled approximately $270 million[5] - NGL's Market Capitalization is $1.33 billion and Enterprise Value is $4.28 billion[38] - NGL's Adjusted EBITDA for continuing operations in FY2025 was $622.892 million[37] Water Solutions Segment - Water Solutions contributed $542.0 million, representing 82% of total revenue[3] - NGL owns and operates over 800 miles of large diameter produced water pipelines in the Northern Delaware Basin[9, 32] - NGL's Delaware Basin water disposal facilities have a permitted disposal capacity of approximately 5,100 MBbl/d[9] - NGL Water Solutions recycled 42.4 million barrels of water in FY2025[32] - Approximately 80% of NGL's total disposal volumes in FY2024 came from investment grade counterparties[17] Crude & Liquids Logistics - Crude Oil Logistics contributed $53.3 million, representing 10% of total revenue[3] - Liquids Logistics contributed $66.4 million, representing 8% of total revenue[2] - Grand Mesa Pipeline has a capacity of 150,000 barrels per day[22]

Core Insights - PrimeEnergy Resources Corporation (PNRG) reported a 1.6% increase in shares since Q1 2025 results, outperforming the S&P 500's 1.8% decline during the same period [1] - The company achieved Q1 revenues of $50.1 million, a 16.4% increase from $42.99 million in the prior year, driven by higher natural gas and NGL volumes despite a decline in oil revenues [2] - Net income decreased by 19.3% to $9.1 million, with diluted EPS falling 15.7% to $3.72 due to increased depreciation and interest expenses [2] Production and Revenue Growth - Oil production rose 6% year over year to 457,000 barrels, while natural gas output increased by 106.6% to 2.39 billion cubic feet, and NGL production surged 120.4% to 454,000 barrels [3] - Oil sales decreased by 1.9% to $32.7 million, but natural gas revenues more than quadrupled to $6 million, and NGL revenues increased by 95.4% to $8.5 million, leading to a total oil and gas revenue improvement of 21% year over year [4] Operating Expenses and Margins - Production costs rose 4.3% to $9.5 million, while depreciation, depletion, and amortization expenses nearly doubled to $20.4 million due to expanded asset base [5] - Interest expenses increased by 174.4% to $590,000, reflecting higher debt balances and interest rates [5] Management Commentary - The CFO described the quarter as showing "strong operational momentum," highlighting growth in gas and NGL volumes and ongoing capital returns through share repurchases [6] - Management emphasized the portfolio's resilience to commodity price volatility, supported by a mix of mature reserves and active development areas in Texas [6] Strategic Factors - Performance was influenced by robust development in West Texas, with participation in numerous new horizontal wells leading to production gains, particularly in natural gas and NGLs [7] - Weaker oil and NGL pricing partially offset revenue gains, while increased depreciation and interest costs impacted profitability [7] Guidance and Outlook - The company plans to invest $118 million in 38 horizontal wells in 2025, continuing aggressive capital deployment in the Midland Basin [8] - Management intends to fund capital needs primarily through operating cash flows and a $300 million credit facility, with $108.5 million remaining available [8] Shareholder Returns - In the quarter, PrimeEnergy repurchased 47,970 shares for $9.17 million, continuing its share repurchase program, with a total of $112.6 million returned to shareholders through buybacks [10] - A gain of $619,000 was recorded from the sale of a workover rig, reflecting ongoing portfolio optimization [10] Overall Assessment - Despite a decline in earnings due to increased investment and rising costs, underlying growth in production and revenues, along with continued capital returns, indicate confidence in the company's long-term strategy [11]

Core Insights - NGL Energy Partners LP (NGL) is expected to see significant increases in capacity due to the LEX II expansion, which is likely to enhance future free cash flow growth [1] - Recent debt refinancing is also a factor that may positively impact the company's financial outlook [1] Financial Analysis - The analysis focuses on cash flow statements and unlevered free cash flow figures, with assumptions based on historical financial data and forecasts regarding the business model [1] - Financial models may include various metrics such as cost of capital, cost of debt, WACC, share count, and net debt [1] - The study typically emphasizes trading multiples like EV/FCF, net income, and EV/EBITDA [1]

Group 1 - NGL's third-quarter earnings report fell short of expectations, with revenue reported at $1.55 billion compared to the anticipated $1.72 billion, and EBITDA at $147.5 million [1] - The article highlights the investment group's focus on asymmetric risk/reward opportunities and clear catalysts for investment [1] Group 2 - The article does not provide additional relevant information regarding the industry or company beyond the earnings report and investment strategy [2][3][4]

Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA for Q3 2025 was $147.7 million, down from $151.7 million in Q3 2024, primarily due to the winding down of the biodiesel business which negatively impacted adjusted EBITDA by $12.1 million [14][15] - Excluding the impact of biodiesel, adjusted EBITDA was approximately $160 million for the quarter, representing a 5% increase compared to the prior year [14][15] - The company anticipates total proceeds of approximately $95 million from the sale of natural gas liquids terminals, expected to close by March 31, 2025 [6][13] Business Line Data and Key Metrics Changes - Water Solutions adjusted EBITDA increased to $132.7 million in Q3 2025 from $121.3 million in Q3 2024, with physical water disposal volumes rising to 2.62 million barrels per day from 2.38 million barrels per day [15][16] - Crude Oil Logistics adjusted EBITDA was $17.4 million in Q3 2025, slightly up from $17 million in the prior year, with average fiscal volumes on Grand Mesa at approximately 61,000 barrels per day compared to 70,000 barrels per day in Q3 2024 [17][18] - Liquids Logistics adjusted EBITDA decreased to $8.2 million from $26.3 million in the prior year, with the winding down of biodiesel significantly impacting results [18][19] Market Data and Key Metrics Changes - Total volumes paid for disposal in Water Solutions increased by 12% in Q3 2025 compared to Q3 2024, reaching 2.91 million barrels per day [15] - The company is experiencing a shift towards becoming a Water Solutions partnership with a focus on Crude Oil Logistics, aiming to improve cash flow repeatability and reduce seasonality [22][24] Company Strategy and Development Direction - The company is simplifying its asset base and reducing working capital needs by winding down non-core businesses, including biodiesel and wholesale propane, which is expected to reduce working capital by $60 million to $70 million annually [8][9] - The LEX II project commenced operations in October 2024 and is performing as expected, contributing to the company's strategic focus on enhancing profitability [10][24] - Future plans include further non-core asset sales to reduce debt and potentially redeem Class D preferred shares once leverage is reduced [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged performance volatility in Liquids Logistics and declining volumes on the Grand Mesa crude oil pipeline, but expressed optimism about new customer additions enhancing future volumes and profitability [22][24] - The company is adjusting its full-year EBITDA guidance to $620 million, reflecting additional weakness in the liquids segment [20] Other Important Information - The company expects to liquidate all biodiesel inventory by the end of February 2025 and sublease remaining railcars by March 31, 2025 [12] - Year-to-date, the biodiesel segment generated negative adjusted EBITDA of $10.3 million [12] Q&A Session Summary Question: Annual run rate EBITDA of remaining assets and Liquids Logistics post transactions - Management indicated it is too early to provide specific numbers as they are still exploring additional opportunities [30][31] Question: Growth trajectory for Crude Oil Logistics to achieve 100,000 barrel mark - Management suggested waiting for fiscal 2026 guidance to quantify growth, indicating a potential 50% volume increase [32][33] Question: Use of asset sale proceeds and addressing Series D preferreds - Management confirmed that proceeds would primarily go towards paying down the ABL balance, with no specific metrics set for addressing preferred shares [36][37] Question: Remaining assets in Liquids Logistics post divestitures - Remaining assets include Ambassador, Chesapeake, Port Hudson, and West Point terminals, with wholesale propane being the only unit with hard assets [39][40] Question: Updated guidance for Water Solutions EBITDA - Management indicated that Water Solutions EBITDA would be below previously guided ranges but did not provide specific numbers [41][42] Question: Profitability of LEX II compared to existing assets - Management stated that LEX II is performing as expected, with no additional contracts signed yet [46][51] Question: Seasonal factors affecting logistics volumes - Management noted a slowdown in logistics volumes during the holiday season but observed a quick recovery in the first quarter of the year [60]

Company Overview - NGL Energy Partners LP (NYSE: NGL) focuses on water solutions, crude oil logistics, and liquids logistics[1,43] - The company provides water transportation, treating, recycling, and handling services, particularly in the Delaware Basin[3,43] - NGL purchases crude oil from producers and marketers for resale and offers storage, terminaling, and transportation services[2,3,43] - The company supplies NGLs, refined products, and biodiesel across the United States and Canada[3,43] Water Solutions Business - NGL operates the largest integrated water disposal system in the Delaware Basin, supported by long-term contracts and acreage dedications[3,8] - The company has over 780 miles of large diameter water pipelines in the Northern Delaware Basin[7,11] - NGL's water handling facilities have a total permitted capacity of approximately 6.4 million barrels per day[7] - In FY2024, NGL sold 30.8 million barrels of recycled water[7] - Approximately 80% of total disposal volumes in FY 2024 came from investment grade counterparties[27] Crude Oil and Liquids Logistics - The Grand Mesa Pipeline has a capacity of 150,000 barrels per day[31] - NGL operates 23 owned terminals connected by pipelines for liquids logistics[3,36] - The company utilizes a fleet of approximately 3,900 leased railcars for propane/butane wholesale[37] Financial Performance and Market Data - As of February 5, 2025, NGL's market capitalization was $1.71 billion and enterprise value was $4.90 billion[58] - NGL's common unit price was $5.62 as of February 5, 2025[58]

Company Overview - Energy Transfer LP (NYSE: ET) is one of the largest midstream master limited partnerships in the United States, with operations spanning much of the Central and Eastern regions of the country [1] Investment Strategy - The company aims to generate a 7%+ income yield by investing in a portfolio of energy stocks while minimizing the risk of principal loss [1] - Subscribers gain access to exclusive investment ideas and in-depth research before they are released to the general public [1] Subscription Offer - A two-week free trial is currently available for the service [1]

Company Overview - Phillips 66 (NYSE: PSX) is a multinational energy company with a market value of nearly $50 billion [3] - The company recently announced a more than $2 billion acquisition to expand its midstream portfolio [3] Investment Strategy - The Value Portfolio specializes in building retirement portfolios using a fact-based research strategy [3] - The strategy includes extensive readings of 10Ks, analyst commentary, market reports, and investor presentations [3] - The portfolio manager invests real money in the stocks he recommends [3] Retirement Planning - The Retirement Forum provides actionable ideas, a high-yield safe retirement portfolio, and macroeconomic outlooks [1] - The forum aims to help individuals maximize their capital and income by searching the entire market for opportunities [1]