Financial Data and Key Metrics Changes - Adjusted EBITDA from continuing operations for the quarter was $172.5 million, up from $158 million a year ago, representing a 9.2% increase [2] - Operating expenses for the quarter were $0.18 per barrel due to non-recurring expense reductions [6] - Full-year EBITDA guidance remains in the range of $650 million to $660 million [4] Business Line Data and Key Metrics Changes - Water Solutions segment generated Adjusted EBITDA of $154.5 million, an increase of 16.5% from $132.7 million in the prior year [5] - Physical disposal volume reached a record of approximately 3.07 million barrels per day, up 17.1% from 2.6 million barrels per day in the prior year [5] - Crude Oil Logistics Adjusted EBITDA was $15.4 million, down from $17.3 million in the prior year's third quarter [6] - Liquids Logistics Adjusted EBITDA was $15.2 million, compared to $18.6 million in the prior year's third quarter [7] Market Data and Key Metrics Changes - The company processed roughly 3.5 million barrels per day of disposal volumes, a record for the partnership [3] - The average physical volumes on the Grand Mesa Pipeline increased to approximately 85,000 barrels per day, up from 61,000 barrels per day in the prior year [6] Company Strategy and Development Direction - The company is transitioning towards a predominantly water solutions company, shedding non-water assets to improve cash flow consistency [12] - Capital allocation priorities include financing internal growth projects, redeeming Class D preferred units, and opportunistically repurchasing common units [13] - The company is pursuing large-scale produced water treatment strategies, including a partnership with Natura Resources for thermal desalination technology [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of growth projects despite crude price volatility, noting that long-term volume commitments remain firm [18] - The company anticipates a strong start to fiscal 2027, projecting to exceed $700 million of EBITDA for the first time [5] - Management highlighted the importance of AI and machine learning in improving operational efficiencies and reducing expenses [10][26] Other Important Information - The company redeemed an additional 18,506 Class D Preferred Units, totaling 88,506, or about 15% of the original Class D outstanding [3] - The company has repurchased approximately 8.7 million common units since the program's inception, nearly 7% of the outstanding units [3] Q&A Session Summary Question: Can you speak to the firmness of the growth projects given the volatility in crude prices? - Management indicated that completed projects came with long-term volume commitments, which remain financially firm despite fluctuations in oil prices [18] Question: How would you characterize the water treatment opportunity in volume and values? - Management emphasized the importance of produced water volumes and available energy sources for economic-scale projects, highlighting the potential of the partnership with Natura [22] Question: What is the current CapEx obligation for the water treatment project? - Management clarified that there would be no CapEx demand from NGL on the nuclear side, and the CapEx forecast remains unchanged [23] Question: Can you discuss the value recovered from the AI and machine learning initiatives? - Management noted improvements in operational expenses and efficiencies but refrained from quantifying the exact dollar amount or percentage of value recovered at this time [26]