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 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] - 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, up 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, an increase of 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 [6] - Liquids Logistics Adjusted EBITDA was $15.2 million, down from $18.6 million in the prior year [7] Market Data and Key Metrics Changes - The company achieved a record daily disposal volume of approximately 3.5 million barrels on January 16 [9] - The Grand Mesa Pipeline physical volumes averaged 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 business, shedding non-water assets to improve cash flow consistency [12] - Capital allocation priorities include financing internal growth projects and redeeming Class D preferred 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][27] Other Important Information - The company has redeemed approximately 15% of the original Class D preferred units and repurchased about 7% of outstanding common units [3][14] - The company is focused on eliminating dilution of common equity, having reduced it by approximately 25% [14] 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 come with long-term volume commitments, which remain financially firm despite fluctuations in oil prices [18][19] 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 desalination projects, highlighting the MOU with Natura [21][22] Question: What is the current CapEx obligation for the water treatment project? - Management stated that there is no immediate CapEx demand from NGL for the nuclear side of the project, 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 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]