NGL Energy Partners LP (NYSE:NGL) Q1 2021 Earnings Conference Call - Final Transcript

Aug 10, 2020 • 05:00 pm ET

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NGL Energy Partners LP (NYSE:NGL) Q1 2021 Earnings Conference Call - Final Transcript

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Q & A
Executive
H. Michael Krimbill

be the same or a little less? Just -- we just can't say. I mean we have no idea. But you don't end up with nothing, which is what some of the folks on the Internet have said.

Analyst
Patrick Fitzgerald

Got you. I appreciate your answers and question.

Executive
H. Michael Krimbill

Yes.

Operator
Operator

And your next question comes from T.J. Schultz from RBC Capital Markets. Please go ahead.

Analyst
T.J. Schultz

Great. Thanks. Hey, guys, good afternoon. Just on that last point on the Grand Mesa contract. Has there been any discussion to negotiate a lower MVC to provide more flexibility? Or is it at this point just a full accept or reject decision to the court and then going through with the unsecured claim?

Executive
H. Michael Krimbill

Probably the easiest thing to say is we have not spoken to anyone representing or the bondholders themselves. So it's hard to negotiate with a ghost.

Analyst
T.J. Schultz

Okay. Understood. Just a question on their exposure for your Water segment. If they're able to reject their water disposal contract, how material is that to you all, if at all?

Executive
Robert W. Karlovich

T.J., I would call it minimal. The DJ Basin, we have a very large area of dedication with lots of producers I would not call insignificant to the company or to the DJ on a stand-alone basis.

Analyst
T.J. Schultz

Okay. Understood. Just last one then moving on. So the Water segment, the opex per barrel, I think you mentioned a partial benefit in this last quarter. And then as we think into the September quarter, maybe with a full quarter benefit, would you expect to get to that sub $0.30 this quarter? Or is there still more to do throughout the year to fully realize that? Thanks.

Executive
Robert W. Karlovich

Yes. We would expect to be at that $0.30 for this upcoming quarter and to stay at or below that level on a go-forward basis.

Analyst
T.J. Schultz

Okay. Great. Thanks guys.

Executive
H. Michael Krimbill

Hey, T.J., it's Mike. Just -- I'll add to that for your first question on the water contract. Again, you don't end up with zero value. So that just increases -- continues to increase our unsecured claim.

Analyst
T.J. Schultz

No. I understand. I appreciate it.

Executive
Robert W. Karlovich

Thanks T.J.

Operator
Operator

And I'm showing no further questions in the queue at this time.

Executive
Robert W. Karlovich

Again, thank you, everybody, for your interest, and we look forward to talking to you on the next earnings call. Have a good evening.

Executive
H. Michael Krimbill

Thank you.

Operator
Operator

[Operator Closing Remarks]