Financial Data and Key Metrics Changes - Adjusted EBITDA from continuing operations for the quarter was $172.5 million, a 9.2% increase from $158 million a year ago [2] - Operating expenses for the quarter were $0.18 per barrel due to non-recurring expense reductions [6] Business Line Data and Key Metrics Changes - Water Solutions segment generated Adjusted EBITDA of $154.5 million, up 16.5% from $132.7 million in the prior-year third quarter [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, down from $18.6 million in the prior-year's third quarter [7] Market Data and Key Metrics Changes - Physical disposal volume record processing was approximately 3.07 million barrels per day, an increase of 17.1% from 2.6 million barrels per day in the prior-year third quarter [5] - Total volumes paid for disposal were up approximately 7% in the third quarter of fiscal 2026 compared to the third quarter of fiscal 2025 [6] Company Strategy and Development Direction - The company is transitioning towards a predominantly water solutions company, aiming to eliminate seasonality in cash flows and improve consistency [12] - Capital allocation priorities include financing internal growth projects, redeeming Class D preferred units, and opportunistically purchasing 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 achieving a strong close to fiscal 2026 and projected EBITDA exceeding $700 million for fiscal 2027 [4][5] - The company is optimistic about securing additional disposal contracts and improving operational efficiencies through AI and machine learning projects [9][10] Other Important Information - The company redeemed an additional 18,506 Class D Preferred Units, totaling 88,506 redeemed, which is 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 and have remained financially firm despite fluctuations in oil prices [18][19] Question: How would you characterize the water treatment opportunity in volume and values? - Management highlighted the importance of produced water volumes and available energy sources for economic-scale desalination projects, emphasizing the potential of the partnership with Natura [21][22] Question: What is the current CapEx obligation for the water treatment project? - Management stated that there would be no CapEx demand from NGL on the nuclear side, and the CapEx forecast remains unchanged [23] Question: Can you speak to the value recovered from 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 [25][27]

Financial Results - Adjusted EBITDA from continuing operations for Q3 Fiscal 2026 was $172.5 million, up from $158.0 million in Q3 Fiscal 2025, representing a growth of 9.4% [1] - Income from continuing operations for Q3 Fiscal 2026 was $48.2 million, compared to $23.7 million in Q3 Fiscal 2025, indicating a significant increase of 103.8% [1] - Total revenues for Q3 Fiscal 2026 were $909.8 million, compared to $982.4 million in Q3 Fiscal 2025 [5] Water Solutions Segment - Paid and physically disposed water volumes reached 3.13 million barrels per day in Q3 Fiscal 2026, a 7% increase from the previous year [1] - Record produced water volumes disposed of were approximately 3.07 million barrels per day, growing 17.1% from Q3 Fiscal 2025 [1] - Operating income for the Water Solutions segment increased by $32.8 million compared to the same quarter last year, driven by higher disposal revenues and increased water pipeline revenue [2] Equity Transactions - The company repurchased 1,611,088 common units during the quarter, totaling 8,698,477 units repurchased at an average price of $5.6963 [1] - In October, NGL purchased an additional 18,506 Class D preferred units, bringing the total redeemed to approximately 15% of the originally outstanding units [1] Capitalization and Liquidity - Total liquidity as of December 31, 2025, was approximately $331.1 million, with borrowings on the asset-based revolving credit facility totaling about $92.0 million [2] - The company is in compliance with all debt covenants and has no upcoming debt maturities [2] Forward-Looking Statements - The company reaffirmed its full-year guidance for Adjusted EBITDA between $650 million to $660 million and anticipates Fiscal 2027 Adjusted EBITDA to exceed $700 million [1]

Financial Performance & Unit Repurchase - NGL Total EBITDA by segment is $155.33 million[2] - Water Solutions segment accounts for 92% of NGL's total EBITDA, equivalent to $142.87 million[2] - Crude Oil Logistics segment accounts for 6% of NGL's total EBITDA, equivalent to $9.583 million[2,32] - Liquids Logistics segment accounts for 2% of NGL's total EBITDA, equivalent to $2.87 million[2,32] - NGL repurchased 70,000 Class D preferred units during Q1 2025, representing approximately 12% of the outstanding units[3] Water Solutions Business - NGL Water Solutions has transformed into the largest integrated water disposal system in the Delaware Basin[4] - NGL owns and operates over 800 miles of large diameter produced water pipelines in the Northern Delaware Basin[7,29] - NGL's Delaware Basin water disposal facilities have a permitted capacity of approximately 5,100,000 barrels per day[7] - In FY2025, NGL sold 42.4 million barrels of recycled water[29] - Approximately 90% of produced and flowback water was received via pipeline during FY2025[29] Market Data - Market Capitalization is $1.39 billion[36] - Enterprise Value is $4.31 billion[36]