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- **Record Growth**: Q2 EBITDA up 12% to $167.3 million, with Water Solutions leading at 18% growth.
- **Expanded Guidance**: Full-year EBITDA raised to $650-660 million, targeting 4x leverage and zero debt by year-end.
- **Strategic Repurchases**: $10.4 million annual savings from Class D units; $15 million interest savings via loan repricing.
- **Future Ambition**: $700+ million EBITDA in 2027 with 750,000 barrels/day of new volume commitments.
- **Competitive Moat**: Largest Delaware Basin network, lowest cost ($0.22/BL), and 4 million barrels/day of exclusive pore space.

**【Management Opening Remarks】**
- **Record Performance**: Q2 2026 adjusted EBITDA from continuing operations reached $167.3 million, up 12% YoY, driven by Water Solutions' 18% EBITDA growth.
- **Guidance Update**: Full-year EBITDA guidance raised to $650-660 million (from $615-625 million), with plans to achieve zero ABL balance and 4x leverage by year-end.
- **Capital Allocation**: $10.4 million annual savings from Class D preferred unit repurchases; $15 million annual interest savings via Term Loan B repricing.
- **Operational Momentum**: Water Solutions averaged 3 million+ barrels/day in October, up 14% YoY in paid disposal volumes.

**【CEO Commentary】**
- **Growth Ambition**: 750,000 barrels/day of new volume commitments for fiscal 2027, targeting $700+ million EBITDA.
- **Competitive Edge**: Largest Delaware Basin network (800+ miles of 12-30" pipe), lowest cost ($0.22/BL), and 4 million barrels/day of unburdened pore space in Andrews County.
- **Simplification Strategy**: Divested non-core assets (truckling, marine, Liquids Logistics) to focus on high-margin water business.
- **Customer Confidence**: 1.5 million barrels/day of volume commitments with 9-year average term, reflecting producer trust in NGL's reliability.

**【CFO Financial Commentary】**
- **Water Solutions Profitability**: $151.9 million EBITDA (18% YoY growth) driven by LEX II pipeline revenue and skim oil sales.
- **Cost Efficiency**: Operating expenses stable at $0.22/BL despite 4% volume growth; $16 million spent on unit repurchases at $4.57 average price.
- **Balance Sheet Strength**: $6.8 million units repurchased (5% of outstanding), reducing future distribution obligations.

**【Q&A Highlights】**
- **Growth Drivers**: Larger producers' focus on Delaware Basin efficiency and NGL's unmatched infrastructure (35+ legacy SWD permits, 131 injection wells).
- **Pore Space Expansion**: 4 million barrels/day of Andrews County capacity, with $50-150 million pipeline projects to access it over several years.
- **2027 Outlook**: $100 million incremental CapEx for SWD wells and pipelines, supporting 10%+ EBITDA growth in fiscal 2026 and 2027.
- **Competitive Position**: Pure-play water leader with no legacy liabilities, outpacing peers in volume, EBITDA, and cost efficiency.

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