Extension of DJ Basin Produced Water
Agreement through 2027
NGL Energy Partners LP (NYSE:NGL) (“NGL,” “our,” “we,” or the
“Partnership”) today reported its first quarter fiscal 2021
results. Highlights for the quarter include:
- Loss from continuing operations for the first quarter of Fiscal
2021 of $33.8 million, compared to income from continuing
operations of $9.0 million for the first quarter of Fiscal
2020
- Adjusted EBITDA from continuing operations for the first
quarter of Fiscal 2021 of $91.0 million, compared to $103.7 million
for the first quarter of Fiscal 2020
- Results impacted by the COVID-19 pandemic and significant
commodity price volatility, which resulted in lower demand for
crude oil, liquids and refined products as well as lower crude oil
prices, production volumes and drilling activity
- Fiscal Year 2021 Adjusted EBITDA expected to range between $560
million and $600 million
Subsequent to June 30, 2020, the Partnership announced the
following:
- New, long-term extension of a current produced water
transportation and disposal agreement with an existing customer,
which is a leading, independent producer customer in the DJ Basin.
The agreement continues our acreage dedication totaling
approximately 180,000 acres in Weld County through December
2027
- Multiple agreements and extensions, including incremental
acreage dedications, with key producers in the Delaware Basin
- New and extended contracts are expected to be serviced with the
Partnership’s existing infrastructure
“Our first quarter results do not fully reflect the actions the
Partnership has taken to maximize earnings through this unique
environment,” stated Mike Krimbill, NGL’s CEO. “We benefited
significantly from our crude oil storage assets during the period;
however, these benefits are not immediately evident as we have
recognized hedge losses on inventory this quarter on product that
will be sold with profits recognized in the second quarter. We also
held most of the skim oil barrels recovered in inventory during the
quarter due to the low crude prices and have been selling those
barrels in the second quarter at much higher price levels. We
believe May and June to be the low point in our water volumes as we
have seen producers bring production back online and increase
activity with crude prices now exceeding $40.00 per barrel. We
accomplished the following during the quarter in our Water
Solutions segment:
- Reduced operating expenses by approximately $2.0 million per
month beginning in June;
- Increased our market share in the Delaware Basin and DJ Basin
through long-term contract extensions and incremental acreage
dedications; and
- Lowered both growth and maintenance capital expenditures by
leveraging the scale of our newly installed, fully integrated
system to capture, process and dispose of produced water.”
“We continue to focus on the future to create value for our
unitholders,” Krimbill concluded.
Quarterly Results of Operations
The following table summarizes operating income (loss) and
Adjusted EBITDA from continuing operations by reportable segment
for the periods indicated:
Quarter Ended
June 30, 2020
June 30, 2019
Operating Income
(Loss)
Adjusted EBITDA
Operating Income
(Loss)
Adjusted EBITDA
(in thousands)
Crude Oil Logistics
$
23,320
$
30,854
$
33,802
$
52,074
Liquids and Refined Products
4,562
12,232
15,371
18,136
Water Solutions
(16,047
)
56,926
13,689
41,089
Corporate and Other
(22,620
)
(9,030
)
(15,342
)
(7,581
)
Total
$
(10,785
)
$
90,982
$
47,520
$
103,718
The tables included in this release reconcile operating income
(loss) to Adjusted EBITDA from continuing operations, a non-GAAP
financial measure, on a consolidated basis and for each of the
Partnership’s reportable segments.
Crude Oil Logistics
Results for the first quarter of Fiscal 2021 declined compared
to the first quarter of Fiscal 2020 primarily due to commodity
prices and lower crude oil demand as a result of the COVID-19
pandemic. In addition, we incurred losses of $9.8 million on the
settlement of derivatives during the current quarter compared to
gains of $1.4 million on the settlement of derivatives in the prior
year quarter. These losses were on derivative positions that were
rolled from June to future months to protect inventory from
significant changes in market value. The inventory, which is valued
at cost as of June 30, 2020, is sold forward at market prices and
the Partnership expects to realize an offsetting gain on this
inventory when it is sold in subsequent periods.
During the three months ended June 30, 2020, financial volumes
on the Grand Mesa Pipeline averaged approximately 119,000 barrels
per day; however, net realized margins on certain volumes purchased
and shipped on the pipeline were negatively impacted by the extreme
crude oil price volatility during the period. The Partnership
estimates a negative impact from these barrels of approximately $11
million during the quarter compared to historical results.
In June 2020, a significant shipper on the Grand Mesa Pipeline
filed a petition for bankruptcy under Chapter 11 of the bankruptcy
code. This third-party has transportation contracts pursuant to
which it has committed to ship crude oil on the Partnership’s
pipeline through October 2026. As part of the bankruptcy filing,
the third-party has requested that the court authorize it to reject
these transportation contracts. The Partnership has filed an
objection and a hearing on this matter is set to take place on
September 3, 2020. To date, both parties have continued to operate
under existing agreements.
Liquids and Refined Products
Total product margin per gallon was $0.027 for the quarter ended
June 30, 2020, compared to $0.039 for the quarter ended June 30,
2019. This decrease was primarily the result of lower refined
products, butane and other product margins, driven primarily by
lower demand for these products as a result of the COVID-19
pandemic and lower commodity prices.
Refined products volumes decreased by approximately 109.7
million gallons, or 34.1%, during the quarter ended June 30, 2020
compared to the quarter ended June 30, 2019. Propane volumes
increased by approximately 7.0 million gallons, or 2.9%, and butane
volumes decreased by approximately 22.9 million gallons, or 16.1%,
when compared to the quarter ended June 30, 2019. Other product
volumes decreased by approximately 40.4 million gallons, or 26.1%,
during the quarter ended June 30, 2020 compared to the same period
in the prior year. The decrease in refined products, butane and
other product volumes was also primarily due to lower demand as a
result of the COVID-19 pandemic.
Water Solutions
The Partnership processed approximately 1.4 million barrels of
water per day during the quarter ended June 30, 2020, a 61.0%
increase when compared to approximately 849,000 barrels of produced
water processed per day during the quarter ended June 30, 2019.
This increase was primarily driven by our acquisition of Mesquite
Disposals Unlimited, LLC (“Mesquite”) and Hillstone Environmental
Partners, LLC in the Delaware Basin and was partially offset by
lower disposal volumes in all other basins during the period
resulting from lower crude oil prices, drilling activity and
production volumes.
Revenues from recovered crude oil, including the impact from
realized skim oil hedges, totaled $10.1 million for the quarter
ended June 30, 2020, a decrease of $7.1 million from the prior year
period. The Partnership made the strategic decision to store the
majority of its recovered crude oil at its various facilities
through the quarter, resulting in significantly lower physical skim
oil sales. The Partnership expects to sell the stored skim oil
during the three months ended September 30, 2020, along with the
barrels recovered during that period.
Operating expenses in the Water Solutions segment decreased on a
per barrel basis to $0.32 compared to $0.42 per barrel in the
comparative quarter last year. The Partnership has taken
significant steps to reduce operating costs and continues to
evaluate cost saving initiatives in the current environment.
Additionally, the Partnership recently announced new agreements,
including acreage dedications, with key producers in the Delaware
Basin and expects to service these customers’ produced water needs
with its existing infrastructure. The Partnership also announced
today that it has executed a new, long-term extension of a current
produced water transportation and disposal agreement in the DJ
Basin through December 2027.
Corporate and Other
Corporate and Other expenses increased from the comparable prior
year period primarily due to the loss recorded for the
uncollectible portion of our loan receivable with a third party and
increased legal costs.
Capitalization and Liquidity
Total debt outstanding was $3.29 billion at June 30, 2020
compared to $3.15 billion at March 31, 2020, an increase of $136
million due primarily to the funding of certain capital
expenditures incurred prior to and accrued on March 31, 2020 and
$66.3 million of the remaining $100.0 million deferred purchase
price of Mesquite. Capital expenditures incurred totaled $29.9
million during the first quarter and are expected to continue to
decrease throughout Fiscal 2021, with full year expectations of
$100 million for both growth and maintenance capital expenditures
combined. Total liquidity (cash plus available capacity on our
revolving credit facility) was approximately $198.2 million as of
June 30, 2020 and the Partnership is in compliance with all of its
debt covenants.
First Quarter Conference Call Information
A conference call to discuss NGL’s results of operations is
scheduled for 4:00 pm Central Time on Monday, August 10, 2020.
Analysts, investors, and other interested parties may access the
conference call by dialing (800) 291-4083 and providing access code
1189407. An archived audio replay of the conference call will be
available for 7 days beginning at 1:00 pm Central Time on August
11, 2020, which can be accessed by dialing (855) 859-2056 and
providing access code 1189407.
Non-GAAP Financial Measures
NGL defines EBITDA as net income (loss) attributable to NGL
Energy Partners LP, plus interest expense, income tax expense
(benefit), and depreciation and amortization expense. NGL defines
Adjusted EBITDA as EBITDA excluding net unrealized gains and losses
on derivatives, lower of cost or net realizable value adjustments,
gains and losses on disposal or impairment of assets, gains and
losses on early extinguishment of liabilities, equity-based
compensation expense, acquisition expense, revaluation of
liabilities, certain legal settlements and other. NGL also includes
in Adjusted EBITDA certain inventory valuation adjustments related
to TransMontaigne Product Services, LLC (“TPSL”), our refined
products business in the mid-continent region of the United States
(“Mid-Con”) and our gas blending business in the southeastern and
eastern regions of the United States (“Gas Blending”), which are
included in discontinued operations, and certain refined products
businesses within NGL’s Liquids and Refined Products segment, as
discussed below. EBITDA and Adjusted EBITDA should not be
considered as alternatives to net (loss) income, (loss) income from
continuing operations before income taxes, cash flows from
operating activities, or any other measure of financial performance
calculated in accordance with GAAP, as those items are used to
measure operating performance, liquidity or the ability to service
debt obligations. NGL believes that EBITDA provides additional
information to investors for evaluating NGL’s ability to make
quarterly distributions to NGL’s unitholders and is presented
solely as a supplemental measure. NGL believes that Adjusted EBITDA
provides additional information to investors for evaluating NGL’s
financial performance without regard to NGL’s financing methods,
capital structure and historical cost basis. Further, EBITDA and
Adjusted EBITDA, as NGL defines them, may not be comparable to
EBITDA, Adjusted EBITDA, or similarly titled measures used by other
entities.
Other than for the TPSL, Mid-Con, and Gas Blending businesses,
which are included in discontinued operations, and certain
businesses within NGL’s Liquids and Refined Products segment, for
purposes of the Adjusted EBITDA calculation, NGL makes a
distinction between realized and unrealized gains and losses on
derivatives. During the period when a derivative contract is open,
NGL records changes in the fair value of the derivative as an
unrealized gain or loss. When a derivative contract matures or is
settled, NGL reverses the previously recorded unrealized gain or
loss and record a realized gain or loss. NGL does not draw such a
distinction between realized and unrealized gains and losses on
derivatives of the TPSL, Mid-Con, and Gas Blending businesses,
which are included in discontinued operations, and certain
businesses within NGL’s Liquids and Refined Products segment. The
primary hedging strategy of these businesses is to hedge against
the risk of declines in the value of inventory over the course of
the contract cycle, and many of the hedges cover extended periods
of time. The “inventory valuation adjustment” row in the
reconciliation table reflects the difference between the market
value of the inventory of these businesses at the balance sheet
date and its cost, adjusted for the impact of seasonal market
movements related to our base inventory and the related hedge. NGL
includes this in Adjusted EBITDA because the unrealized gains and
losses associated with derivative contracts associated with the
inventory of this segment, which are intended primarily to hedge
inventory holding risk and are included in net income, also affect
Adjusted EBITDA.
Distributable Cash Flow is defined as Adjusted EBITDA minus
maintenance capital expenditures, income tax expense, cash interest
expense, preferred unit distributions and other. Maintenance
capital expenditures represent capital expenditures necessary to
maintain the Partnership’s operating capacity. Distributable Cash
Flow is a performance metric used by senior management to compare
cash flows generated by the Partnership (excluding growth capital
expenditures and prior to the establishment of any retained cash
reserves by the Board of Directors) to the cash distributions
expected to be paid to unitholders. Using this metric, management
can quickly compute the coverage ratio of estimated cash flows to
planned cash distributions. This financial measure also is
important to investors as an indicator of whether the Partnership
is generating cash flow at a level that can sustain, or support an
increase in, quarterly distribution rates. Actual distribution
amounts are set by the Board of Directors.
Forward-Looking Statements
This press release includes “forward-looking statements.” All
statements other than statements of historical facts included or
incorporated herein may constitute forward-looking statements.
Actual results could vary significantly from those expressed or
implied in such statements and are subject to a number of risks and
uncertainties. While NGL believes such forward-looking statements
are reasonable, NGL cannot assure they will prove to be correct.
The forward-looking statements involve risks and uncertainties that
affect operations, financial performance, and other factors as
discussed in filings with the Securities and Exchange Commission.
Other factors that could impact any forward-looking statements are
those risks described in NGL’s Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, and other public filings. You are
urged to carefully review and consider the cautionary statements
and other disclosures made in those filings, specifically those
under the heading “Risk Factors.” NGL undertakes no obligation to
publicly update or revise any forward-looking statements except as
required by law.
NGL provides Adjusted EBITDA guidance that does not include
certain charges and costs, which in future periods are generally
expected to be similar to the kinds of charges and costs excluded
from Adjusted EBITDA in prior periods, such as income taxes,
interest and other non-operating items, depreciation and
amortization, net unrealized gains and losses on derivatives, lower
of cost or net realizable value adjustments, gains and losses on
disposal or impairment of assets, gains and losses on early
extinguishment of liabilities, equity-based compensation expense,
acquisition expense, revaluation of liabilities and items that are
unusual in nature or infrequently occurring. The exclusion of these
charges and costs in future periods will have a significant impact
on the Partnership’s Adjusted EBITDA, and the Partnership is not
able to provide a reconciliation of its Adjusted EBITDA guidance to
net income (loss) without unreasonable efforts due to the
uncertainty and variability of the nature and amount of these
future charges and costs and the Partnership believes that such
reconciliation, if possible, would imply a degree of precision that
would be potentially confusing or misleading to investors.
About NGL Energy Partners LP
NGL Energy Partners LP, a Delaware limited partnership, is a
diversified midstream energy company that transports, stores,
markets and provides other logistics services for crude oil,
natural gas liquids and other products and transports, treats and
disposes of produced water generated as part of the oil and natural
gas production process. For further information, visit the
Partnership’s website at www.nglenergypartners.com.
NGL ENERGY PARTNERS LP AND
SUBSIDIARIES
Unaudited Condensed
Consolidated Balance Sheets
(in Thousands, except unit
amounts)
June 30, 2020
March 31, 2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
26,400
$
22,704
Accounts receivable-trade, net of
allowance for expected credit losses of $3,674 and $4,540,
respectively
424,814
566,834
Accounts receivable-affiliates
14,814
12,934
Inventories
135,918
69,634
Prepaid expenses and other current
assets
75,433
101,981
Total current assets
677,379
774,087
PROPERTY, PLANT AND EQUIPMENT, net of
accumulated depreciation of $570,806 and $529,068, respectively
2,833,002
2,851,555
GOODWILL
993,114
993,587
INTANGIBLE ASSETS, net of accumulated
amortization of $670,382 and $631,449, respectively
1,574,216
1,612,480
INVESTMENTS IN UNCONSOLIDATED ENTITIES
22,626
23,182
OPERATING LEASE RIGHT-OF-USE ASSETS
177,010
180,708
OTHER NONCURRENT ASSETS
48,739
63,137
Total assets
$
6,326,086
$
6,498,736
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable-trade
$
367,463
$
515,049
Accounts payable-affiliates
22,864
17,717
Accrued expenses and other payables
142,836
232,062
Advance payments received from
customers
25,326
19,536
Current maturities of long-term debt
4,521
4,683
Operating lease obligations
53,720
56,776
Total current liabilities
616,730
845,823
LONG-TERM DEBT, net of debt issuance costs
of $24,022 and $19,795, respectively, and current maturities
3,281,402
3,144,848
OPERATING LEASE OBLIGATIONS
120,986
121,013
OTHER NONCURRENT LIABILITIES
112,034
114,079
CLASS D 9.00% PREFERRED UNITS, 600,000 and
600,000 preferred units issued and outstanding, respectively
544,151
537,283
EQUITY:
General partner, representing a 0.1%
interest, 128,901 and 128,901 notional units, respectively
(51,474
)
(51,390
)
Limited partners, representing a 99.9%
interest, 128,771,715 and 128,771,715 common units issued and
outstanding, respectively
1,283,491
1,366,152
Class B preferred limited partners,
12,585,642 and 12,585,642 preferred units issued and outstanding,
respectively
305,468
305,468
Class C preferred limited partners,
1,800,000 and 1,800,000 preferred units issued and outstanding,
respectively
42,891
42,891
Accumulated other comprehensive loss
(341
)
(385
)
Noncontrolling interests
70,748
72,954
Total equity
1,650,783
1,735,690
Total liabilities and equity
$
6,326,086
$
6,498,736
NGL ENERGY PARTNERS LP AND
SUBSIDIARIES
Unaudited Condensed
Consolidated Statements of Operations
(in Thousands, except unit and
per unit amounts)
Three Months Ended June
30,
2020
2019
REVENUES:
Crude Oil Logistics
$
276,039
$
716,160
Water Solutions
88,065
71,783
Liquids and Refined Products
479,998
1,083,693
Other
313
255
Total Revenues
844,415
1,871,891
COST OF SALES:
Crude Oil Logistics
217,557
649,240
Water Solutions
4,700
(2,807
)
Liquids and Refined Products
454,336
1,043,032
Other
454
465
Total Cost of Sales
677,047
1,689,930
OPERATING COSTS AND EXPENSES:
Operating
64,987
61,312
General and administrative
17,158
20,342
Depreciation and amortization
83,986
53,754
Loss (gain) on disposal or impairment of
assets, net
12,022
(967
)
Operating (Loss) Income
(10,785
)
47,520
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated
entities
289
8
Interest expense
(43,961
)
(39,877
)
Gain on early extinguishment of
liabilities, net
19,355
—
Other income, net
1,035
1,010
(Loss) Income From Continuing Operations
Before Income Taxes
(34,067
)
8,661
INCOME TAX BENEFIT
301
321
(Loss) Income From Continuing
Operations
(33,766
)
8,982
Loss From Discontinued Operations, net of
Tax
(1,486
)
(943
)
Net (Loss) Income
(35,252
)
8,039
LESS: NET (INCOME) LOSS ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
(51
)
268
NET (LOSS) INCOME ATTRIBUTABLE TO NGL
ENERGY PARTNERS LP
$
(35,303
)
$
8,307
NET LOSS FROM CONTINUING OPERATIONS
ALLOCATED TO COMMON UNITHOLDERS
$
(55,815
)
$
(120,126
)
NET LOSS FROM DISCONTINUED OPERATIONS
ALLOCATED TO COMMON UNITHOLDERS
$
(1,485
)
$
(942
)
NET LOSS ALLOCATED TO COMMON
UNITHOLDERS
$
(57,300
)
$
(121,068
)
BASIC LOSS PER COMMON UNIT
Loss From Continuing Operations
$
(0.43
)
$
(0.95
)
Loss From Discontinued Operations, net of
Tax
$
(0.01
)
$
(0.01
)
Net Loss
$
(0.44
)
$
(0.96
)
DILUTED LOSS PER COMMON UNIT
Loss From Continuing Operations
$
(0.43
)
$
(0.95
)
Loss From Discontinued Operations, net of
Tax
$
(0.01
)
$
(0.01
)
Net Loss
$
(0.44
)
$
(0.96
)
BASIC WEIGHTED AVERAGE COMMON UNITS
OUTSTANDING
128,771,715
125,886,738
DILUTED WEIGHTED AVERAGE COMMON UNITS
OUTSTANDING
128,771,715
125,886,738
EBITDA, ADJUSTED EBITDA AND
DISTRIBUTABLE CASH FLOW RECONCILIATION
(Unaudited)
The following table reconciles
NGL’s net (loss) income to NGL’s EBITDA, Adjusted EBITDA and
Distributable Cash Flow:
Three Months Ended June
30,
2020
2019
(in thousands)
Net (loss) income
$
(35,252
)
$
8,039
Less: Net (income) loss attributable to
noncontrolling interests
(51
)
268
Net (loss) income attributable to NGL
Energy Partners LP
(35,303
)
8,307
Interest expense
44,066
39,910
Income tax benefit
(301
)
(311
)
Depreciation and amortization
83,202
54,844
EBITDA
91,664
102,750
Net unrealized losses (gains) on
derivatives
26,671
(3,474
)
Inventory valuation adjustment (1)
3,820
(19,746
)
Lower of cost or net realizable value
adjustments
(32,003
)
(918
)
Loss (gain) on disposal or impairment of
assets, net
13,084
(967
)
Gain on early extinguishment of
liabilities, net
(19,355
)
—
Equity-based compensation expense (2)
2,302
3,701
Acquisition expense (3)
157
2,091
Other (4)
4,348
3,323
Adjusted EBITDA
$
90,688
$
86,760
Adjusted EBITDA - Discontinued Operations
(5)
$
(294
)
$
(16,958
)
Adjusted EBITDA - Continuing
Operations
$
90,982
$
103,718
Less: Cash interest expense (6)
40,399
37,775
Less: Income tax benefit
(301
)
(321
)
Less: Maintenance capital expenditures
9,168
16,929
Less: Preferred unit distributions
15,030
13,076
Distributable Cash Flow - Continuing
Operations
$
26,686
$
36,259
___________
(1)
Amount reflects the difference
between the market value of the inventory at the balance sheet date
and its cost, adjusted for the impact of seasonal market movements
related to our base inventory and the related hedge position. See
“Non-GAAP Financial Measures” section above for a further
discussion.
(2)
Equity-based compensation expense
in the table above may differ from equity-based compensation
expense reported in the footnotes to our unaudited condensed
consolidated financial statements included in the Partnership’s
Quarterly Report on Form 10-Q for the quarter ended June 30, 2020.
Amounts reported in the table above include expense accruals for
bonuses expected to be paid in common units, whereas the amounts
reported in the footnotes to our unaudited condensed consolidated
financial statements only include expenses associated with
equity-based awards that have been formally granted.
(3)
Amounts represent expenses we
incurred related to legal and advisory costs associated with
acquisitions.
(4)
Amounts for the three months
ended June 30, 2020 and 2019 represent non-cash operating expenses
related to our Grand Mesa Pipeline, unrealized losses on marketable
securities and accretion expense for asset retirement
obligations.
(5)
Amounts include the operations of
TPSL, Gas Blending and Mid-Con.
(6)
Amounts represent interest
expense payable in cash for the period presented, excluding changes
in the accrued interest balance.
ADJUSTED EBITDA RECONCILIATION BY
SEGMENT
Three Months Ended June 30,
2020
Crude Oil Logistics
Water Solutions
Liquids and Refined
Products
Corporate and Other
Continuing Operations
Discontinued Operations (TPSL,
Mid-Con, Gas Blending)
Consolidated
(in thousands)
Operating income (loss)
$
23,320
$
(16,047
)
$
4,562
$
(22,620
)
$
(10,785
)
$
—
$
(10,785
)
Depreciation and amortization
16,795
58,133
8,156
902
83,986
—
83,986
Amortization recorded to cost of sales
—
—
77
—
77
—
77
Net unrealized losses (gains) on
derivatives
14,638
13,312
(1,279
)
—
26,671
—
26,671
Inventory valuation adjustment
—
—
3,840
—
3,840
—
3,840
Lower of cost or net realizable value
adjustments
(29,060
)
—
(2,963
)
—
(32,023
)
—
(32,023
)
Loss on disposal or impairment of assets,
net
1,450
329
4
10,239
12,022
—
12,022
Equity-based compensation expense
—
—
—
2,302
2,302
—
2,302
Acquisition expense
—
12
—
145
157
—
157
Other income, net
338
256
377
64
1,035
—
1,035
Adjusted EBITDA attributable to
unconsolidated entities
—
465
(1
)
(62
)
402
—
402
Adjusted EBITDA attributable to
noncontrolling interest
—
(487
)
(536
)
—
(1,023
)
—
(1,023
)
Intersegment transactions (1)
—
—
(27
)
—
(27
)
—
(27
)
Other
3,373
953
22
—
4,348
—
4,348
Discontinued operations
—
—
—
—
—
(294
)
(294
)
Adjusted EBITDA
$
30,854
$
56,926
$
12,232
$
(9,030
)
$
90,982
$
(294
)
$
90,688
Three Months Ended June 30,
2019
Crude Oil Logistics
Water Solutions
Liquids and Refined
Products
Corporate and Other
Continuing Operations
Discontinued Operations (TPSL,
Mid-Con, Gas Blending)
Consolidated
(in thousands)
Operating income (loss)
$
33,802
$
13,689
$
15,371
$
(15,342
)
$
47,520
$
—
$
47,520
Depreciation and amortization
17,585
28,071
7,355
743
53,754
—
53,754
Amortization recorded to cost of sales
—
—
87
—
87
—
87
Net unrealized gains on derivatives
(1,858
)
(167
)
(1,449
)
—
(3,474
)
—
(3,474
)
Inventory valuation adjustment
—
—
34
—
34
—
34
Lower of cost or net realizable value
adjustments
—
—
(1,623
)
—
(1,623
)
—
(1,623
)
(Gain) loss on disposal or impairment of
assets, net
(616
)
(589
)
(3
)
241
(967
)
—
(967
)
Equity-based compensation expense
—
—
—
3,701
3,701
—
3,701
Acquisition expense
—
20
—
2,071
2,091
—
2,091
Other (expense) income, net
(4
)
—
20
994
1,010
—
1,010
Adjusted EBITDA attributable to
unconsolidated entities
—
—
4
11
15
—
15
Adjusted EBITDA attributable to
noncontrolling interest
—
(75
)
(397
)
—
(472
)
—
(472
)
Intersegment transactions (1)
—
—
(1,281
)
—
(1,281
)
—
(1,281
)
Other
3,165
140
18
—
3,323
—
3,323
Discontinued operations
—
—
—
—
—
(16,958
)
(16,958
)
Adjusted EBITDA
$
52,074
$
41,089
$
18,136
$
(7,581
)
$
103,718
$
(16,958
)
$
86,760
___________
(1)
Amount reflects the transactions
with TPSL, Mid-Con and Gas Blending that are eliminated in
consolidation.
OPERATIONAL DATA
(Unaudited)
Three Months Ended
June 30,
2020
2019
(in thousands, except per day
amounts)
Crude Oil Logistics:
Crude oil sold (barrels)
9,292
11,291
Crude oil transported on owned pipelines
(barrels)
10,476
11,789
Crude oil storage capacity - owned and
leased (barrels) (1)
5,239
5,232
Crude oil inventory (barrels) (1)
1,622
1,125
Water Solutions:
Produced water processed (barrels per
day)
Northern Delaware Basin
915,188
88,089
Permian Basin
214,340
311,540
Eagle Ford Basin
95,375
267,244
DJ Basin
132,365
169,620
Other Basins
9,151
12,394
Total
1,366,419
848,887
Solids processed (barrels per day)
1,899
5,442
Skim oil sold (barrels per day)
687
2,860
Liquids and Refined Products:
Refined products sold (gallons)
211,974
321,634
Propane sold (gallons)
252,289
245,267
Butane sold (gallons)
119,566
142,479
Other products sold (gallons)
114,222
154,592
Liquids and Refined Products storage
capacity - owned and leased (gallons) (1)
399,251
400,409
Refined products inventory (gallons)
(1)
2,656
4,420
Propane inventory (gallons) (1)
77,968
76,012
Butane inventory (gallons) (1)
73,291
53,219
Other products inventory (gallons) (1)
31,583
52,071
___________
(1)
Information is presented as of
June 30, 2020 and June 30, 2019, respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200810005749/en/
NGL Energy Partners LP Trey Karlovich, 918-481-1119 Chief
Financial Officer and Executive Vice President
Trey.Karlovich@nglep.com or Linda Bridges, 918-481-1119 Senior Vice
President - Finance and Treasurer Linda.Bridges@nglep.com
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