NGL Energy Partners LP Announces LEX II Pipeline Extension to Eddy County, New Mexico

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Produced water is the salty, oily wastewater that comes up from underground alongside oil and gas when wells are drilled and operated; it contains dissolved salts, leftover hydrocarbons and treatment chemicals. For investors, produced water matters because handling, treating, storing and disposing of it creates ongoing operating costs, regulatory obligations and environmental risk—similar to how a factory’s wastewater can drive cleanup bills or fines—while opportunities to reuse or recover resources can offset some costs.

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TULSA, Okla.--(BUSINESS WIRE)-- NGL Energy Partners LP (NYSE:NGL) (“NGL,” or the “Partnership”) announced today that NGL Water Solutions is commencing expansion of its Lea County Express Pipeline System (LEX II Extension). The extension includes 60 miles of large-diameter pipeline, new disposal wells, and injection facilities that expand the capabilities of NGL’s existing produced water super-system and significantly increases out of basin produced water disposal for the Delaware Basin. The project expands the current long haul LEX Pipeline System to 81 miles with a capability to transport approximately 560,000 barrels per day of produced water from Eddy and Lea Counties, NM to Andrews County, TX. The LEX II Extension is underwritten by a newly executed long-term volume commitment contract that includes increased volume commitments, and an additional four township committed area in Eddy County, NM.

LEX II Expansion Highlights:

• 60-mile 24 & 30-inch diameter produced water pipeline
• Increased capacity of 165,000 bpd resulting in LEX System capacity of 560,000 bpd with ability to further expand to 650,000 bpd
• Four Township increase in committed acreage and increased committed volumes under dedication from the producer

“NGL remains focused on our commitment to deliver scalable and reliable produced water management for our customers through our super-system pipeline platform and substantial pore space inventory on the Central Basin Platform,” commented Doug White, EVP of NGL Water Solutions.

NGL owns and operates the largest integrated network of large diameter wastewater pipelines, disposal wells and produced water handling systems in the Delaware Basin. NGL’s Water Solutions segment operates in several of the most prolific crude oil and natural gas producing basins, including the Delaware, Eagle Ford and DJ Basins.

Forward-Looking Statements

Certain matters contained in this press release include “forward-looking statements.” All statements, other than statements of historical fact, included in this press release may constitute forwarding-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include, but are not limited to, the risk factors discussed from time to time in each of our documents and reports filed with the SEC.

Readers are cautioned not to place undue reliance on any forward-looking statements contained in this press release, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements.

About NGL Energy Partners LP

NGL Energy Partners LP has strategically transformed into a water focused midstream partnership, with its Water Solutions segment now serving as the core of the business and primary driver of earnings. The segment operates the largest integrated produced water pipeline, disposal, and water handling network in the Delaware Basin, including over 3.0 million barrels per day of produced water disposal. Water Solutions now generates approximately 85% of consolidated Adjusted EBITDA excluding corporate overhead, supported by long term, fee-based producer contracts, expanding pipeline infrastructure throughout the Delaware Basin, and ongoing disposal capacity investments. While NGL maintains complementary crude oil and liquids logistics operations, capital allocation and strategic focus are firmly centered on Water Solutions, enhancing cash flow stability, reducing earnings volatility, and positioning the Partnership as a leading pure play produced water infrastructure platform. For further information, visit the Partnership’s website at www.nglenergypartners.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260506942257/en/

Contact for Expansion Opportunities
NGL Water Solutions
Christian Holcomb, 303-815-1010
Senior Vice President & Chief Operating Officer – NGL Water Solutions
Christian.Holcomb@nglep.com

Investor Contact:
NGL Energy Partners LP
David Sullivan, 918-495-4631
Vice President - Finance
David.Sullivan@nglep.com

Source: NGL Energy Partners LP