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]