NGL Energy Partners LP (NYSE:NGL) (“NGL,” “our,” “we,” or the
“Partnership”) today reported a net loss for the quarter ended
June 30, 2018 of $169.3 million, compared to a net loss of
$63.7 million for the quarter ended June 30, 2017. The net
loss for the current quarter includes a loss on the disposal and
impairment of assets of $101.3 million and expenses related to the
accrual for the settlement of litigation of $35.0 million.
Highlights for the quarter include:
- Adjusted EBITDA for the first
quarter of Fiscal 2019 was $80.3 million, compared to $38.9 million
for the first quarter of Fiscal 2018, an increase of over
106%
- Completed the sale of virtually all
of our remaining Retail Propane segment to Superior Plus Corp.
(“Superior”) for $900 million in gross proceeds (adjusted for
working capital) on July 10, 2018
- Confirms Fiscal 2019 Adjusted EBITDA
guidance with a target of $450 million remains unchanged
- Growth capital expenditures,
including $125.9 million in acquisitions of Water Solutions
facilities and related assets, and other investments, totaled
approximately $193.2 million during the first quarter (excluding
Retail Propane segment)
“Our financial results for the quarter are right in line with
our expectations and we anticipate increasingly stronger quarterly
results for the remainder of this fiscal year,” stated CEO Mike
Krimbill. “Our balance sheet and liquidity are much stronger
following the closing of the retail propane sale in July and we are
well positioned for the future. Each of our business units is
performing well and with the acquisitions we have recently
completed in the Water Solutions business, I am confident about our
growth opportunities and the execution of our strategic
direction.”
Quarterly Results of Operations
The following table summarizes operating income (loss) and
Adjusted EBITDA by operating segment for the periods indicated:
Quarter Ended June 30, 2018
June 30, 2017
OperatingIncome (Loss)
AdjustedEBITDA
OperatingIncome (Loss)
AdjustedEBITDA
(in thousands) Crude Oil Logistics $ (99,738 ) $ 30,441 $
4,357 $ 25,836 Refined Products and Renewables 29,022 3,763 14,496
(7,799 ) Liquids 2,623 10,841 (8,772 ) (1,240 ) Water Solutions 969
38,597 (1,154 ) 22,145 Corporate and Other (17,430 ) (8,880 )
(17,726 ) (6,751 ) Discontinued Operations (1) — 5,552
— 6,738 Total $ (84,554 ) $ 80,314 $
(8,799 ) $ 38,929
_________
(1) On July 10, 2018, we completed the sale of virtually all
of our remaining Retail Propane segment to Superior for total
consideration of $896.5 million in cash after adjusting for
estimated working capital. As a result, we have classified the
assets, liabilities and redeemable noncontrolling interest as held
for sale and the results of operations have been classified as
discontinued operations.
The tables included in this release reconcile operating income
(loss) to Adjusted EBITDA, a non-GAAP financial measure, for each
of our operating segments.
Crude Oil Logistics
The Partnership’s Crude Oil Logistics segment generated Adjusted
EBITDA of $30.4 million during the quarter ended June 30,
2018, compared to Adjusted EBITDA of $25.8 million during the
quarter ended June 30, 2017. Results for the first quarter of
Fiscal 2019 improved compared to the same quarter in Fiscal 2018
primarily due to increased volumes on Grand Mesa Pipeline. The
Partnership sold a portion of its rights and obligations to ship on
certain third-party pipelines during the quarter and recognized a
loss of $105.0 million on the transaction while eliminating its
future commitments.
The Partnership’s Grand Mesa Pipeline contributed Adjusted
EBITDA of approximately $44.7 million during the first quarter of
Fiscal 2019, an increase of $14.7 million when compared to Adjusted
EBITDA of approximately $30.0 million during the same quarter of
last year, due to increased volumes related to production growth in
the DJ Basin. Physical volumes averaged approximately 110,000
barrels per day and financial volumes averaged approximately
112,000 barrels per day during the quarter ended June 30,
2018.
Refined Products and Renewables
The Partnership’s Refined Products and Renewables segment
generated Adjusted EBITDA of $3.8 million during the quarter ended
June 30, 2018, compared to Adjusted EBITDA of $(7.8) million
during the quarter ended June 30, 2017. The results for the
quarter ended June 30, 2018 were positively impacted by an
increase in prices, volumes and product margins of refined products
due to stronger demand at our wholesale locations, especially in
the Southeast and West Texas.
Refined product barrels sold during the quarter ended
June 30, 2018 totaled approximately 52.5 million barrels, an
increase of approximately 10.2 million barrels compared to the same
period in the prior year due to an increase in bulk sales volumes.
Renewable barrels sold during the quarter ended June 30, 2018
totaled approximately 0.9 million, a decrease of approximately 0.8
million barrels compared to the same period in the prior year.
Liquids
The Partnership’s Liquids segment generated Adjusted EBITDA of
$10.8 million during the quarter ended June 30, 2018, compared
to Adjusted EBITDA of $(1.2) million during the quarter ended
June 30, 2017. Total product margin per gallon was $0.031 for
the quarter ended June 30, 2018, compared to $0.004 for the
quarter ended June 30, 2017, as a result of higher prices,
increased demand, higher than anticipated production and increased
railcar utilization.
Propane volumes increased by approximately 9.1 million gallons,
or 4.0%, during the quarter ended June 30, 2018 compared to
the quarter ended June 30, 2017. Butane volumes increased by
approximately 21.5 million gallons, or 23.5%, during the quarter
ended June 30, 2018 compared to the quarter ended
June 30, 2017. Other Liquids volumes increased by
approximately 26.4 million gallons, or 29.1%, during the quarter
ended June 30, 2018 compared to the same period in the prior
year. The increase in overall volumes is primarily attributable to
an increase in volume moved by railcars due to third-party pipeline
infrastructure issues.
Water Solutions
The Partnership’s Water Solutions segment generated Adjusted
EBITDA of $38.6 million during the quarter ended June 30,
2018, compared to Adjusted EBITDA of $22.1 million during the
quarter ended June 30, 2017. The Partnership processed
approximately 920,000 barrels of wastewater per day during the
quarter ended June 30, 2018, a 47.4% increase when compared to
approximately 624,000 barrels of wastewater per day during the
quarter ended June 30, 2017.
Processed water volumes have increased in each basin in which
the Partnership operates as the segment continued to benefit from
high crude oil prices, increased rig activity and crude oil
production. Revenues from recovered hydrocarbons totaled $20.2
million for the quarter ended June 30, 2018, an increase of
$10.3 million over the prior year period, related to an increase in
the volume of wastewater processed and increased crude oil
prices.
Retail Propane - Discontinued Operations
The Partnership’s Retail Propane segment generated Adjusted
EBITDA of $5.6 million during the quarter ended June 30, 2018,
compared to Adjusted EBITDA of $6.7 million during the quarter
ended June 30, 2017. Propane sold during the quarter ended
June 30, 2018 totaled 22.7 million gallons and decreased by
approximately 4.5 million gallons, compared to the quarter ended
June 30, 2017, primarily due to the sale of a portion of our
Retail Propane segment on March 30, 2018. Distillates sold during
the quarter ended June 30, 2018 were relatively flat compared
to the quarter ended June 30, 2017. Total product margin per
gallon was $1.013 for the quarter ended June 30, 2018,
compared to $0.976 for the quarter ended June 30, 2017. On
July 10, 2018, we completed the sale of virtually all of our
remaining Retail Propane segment to Superior for total
consideration of $896.5 million in cash after adjusting for
estimated working capital. As a result, we have classified the
assets, liabilities and redeemable noncontrolling interest as held
for sale and the results of operations have been classified as
discontinued operations.
Corporate and Other
Adjusted EBITDA for Corporate and Other was $(8.9) million
during the quarter ended June 30, 2018, compared to Adjusted
EBITDA of $(6.8) million during the quarter ended June 30,
2017. The decrease was due primarily to increased legal costs
related to certain litigation matters.
Capitalization and Liquidity
Total long-term debt outstanding, excluding working capital
borrowings, was $1.972 billion at June 30, 2018 compared to
$1.710 billion at March 31, 2018, an increase of $261.6
million, primarily as a result of acquisitions and growth capital
projects within our Water Solutions segment. Working capital
borrowings totaled $1.061 billion at June 30, 2018 compared to
$969.5 million at March 31, 2018, an increase of $91.0 million
driven primarily by increases in inventory prices during the
quarter. Total liquidity (cash plus available capacity on our
revolving credit facility) was approximately $324.3 million as of
June 30, 2018. The $896.5 million in cash proceeds from the
sale of the Retail Propane segment were initially utilized to
reduce the outstanding balance on the Partnership’s revolving
credit facility on July 10, 2018.
First Quarter Conference Call Information
A conference call to discuss NGL’s results of operations is
scheduled for 11:00 am Eastern Time (10:00 am Central
Time) on Tuesday, August 7, 2018. Analysts, investors, and
other interested parties may access the conference call by dialing
(800) 291-4083 and providing access code 8886005. An archived
audio replay of the conference call will be available for 7 days
beginning at 11:00 am Eastern Time (10:00 am Central
Time) on August 8, 2018, which can be accessed by dialing
(855) 859-2056 and providing access code 8886005.
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 market 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. We also include in Adjusted EBITDA
certain inventory valuation adjustments related to our Refined
Products and Renewables segment, as discussed below. EBITDA and
Adjusted EBITDA should not be considered alternatives to net loss,
(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 NGL’s Refined Products and Renewables 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 NGL’s Refined Products and Renewables segment. The
primary hedging strategy of NGL’s Refined Products and Renewables
segment 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 are six months to one year in duration at inception. The
“inventory valuation adjustment” row in the reconciliation table
reflects the difference between the market value of the inventory
of NGL’s Refined Products and Renewables segment at the balance
sheet date and its cost. We include 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 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 market 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 is a Delaware limited partnership. NGL
owns and operates a vertically integrated energy business with four
primary businesses: Crude Oil Logistics, Water Solutions, Liquids,
and Refined Products and Renewables. NGL completed its initial
public offering in May 2011. 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, 2018 March 31, 2018 ASSETS
CURRENT ASSETS: Cash and cash equivalents $ 13,682 $ 22,094
Accounts receivable-trade, net of allowance for doubtful accounts
of $4,385 and $4,201, respectively 1,096,596 1,026,764 Accounts
receivable-affiliates 8,824 4,772 Inventories 600,486 551,303
Prepaid expenses and other current assets 135,097 128,742 Assets
held for sale 515,012 517,604 Total current assets
2,369,697 2,251,279 PROPERTY, PLANT AND EQUIPMENT, net of
accumulated depreciation of $365,782 and $343,345, respectively
1,604,498 1,518,607 GOODWILL 1,262,971 1,204,607 INTANGIBLE ASSETS,
net of accumulated amortization of $452,314 and $433,565,
respectively 907,540 913,154 INVESTMENTS IN UNCONSOLIDATED ENTITIES
1,995 17,236 LOAN RECEIVABLE-AFFILIATE 2,135 1,200 OTHER NONCURRENT
ASSETS 175,138 245,039 Total assets $ 6,323,974
$ 6,151,122
LIABILITIES AND EQUITY CURRENT
LIABILITIES AND REDEEMABLE NONCONTROLLING INTEREST: Accounts
payable-trade $ 836,233 $ 852,839 Accounts payable-affiliates
24,874 1,254 Accrued expenses and other payables 225,617 223,504
Advance payments received from customers 21,871 8,374 Current
maturities of long-term debt 646 646 Liabilities and redeemable
noncontrolling interest held for sale 55,824 42,580
Total current liabilities and redeemable noncontrolling interest
1,165,065 1,129,197 LONG-TERM DEBT, net of debt issuance costs of
$19,340 and $20,645, respectively, and current maturities 3,032,383
2,679,740 OTHER NONCURRENT LIABILITIES 63,539 173,514 CLASS
A 10.75% CONVERTIBLE PREFERRED UNITS, 19,942,169 and 19,942,169
preferred units issued and outstanding, respectively 91,559 82,576
EQUITY: General partner, representing a 0.1% interest,
121,874 and 121,594 notional units, respectively (50,919 ) (50,819
) Limited partners, representing a 99.9% interest, 121,752,514 and
121,472,725 common units issued and outstanding, respectively
1,740,410 1,852,495 Class B preferred limited partners, 8,400,000
and 8,400,000 preferred units issued and outstanding, respectively
202,731 202,731 Accumulated other comprehensive loss (257 ) (1,815
) Noncontrolling interests 79,463 83,503 Total equity
1,971,428 2,086,095 Total liabilities and equity $
6,323,974 $ 6,151,122
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, 2018
2017 REVENUES: Crude Oil Logistics $ 783,830 $ 504,915 Water
Solutions 76,145 46,967 Liquids 459,897 294,025 Refined Products
and Renewables 4,524,407 2,884,637 Other 155 161
Total Revenues 5,844,434 3,730,705 COST OF SALES: Crude Oil
Logistics 748,245 469,470 Water Solutions 14,269 153 Liquids
440,515 287,285 Refined Products and Renewables 4,492,858 2,871,702
Other 269 73 Total Cost of Sales 5,696,156 3,628,683
OPERATING COSTS AND EXPENSES: Operating 56,262 47,836 General and
administrative 22,390 22,385 Depreciation and amortization 52,045
52,417 Loss (gain) on disposal or impairment of assets, net 101,335
(11,817 ) Revaluation of liabilities 800 — Operating
Loss (84,554 ) (8,799 ) OTHER INCOME (EXPENSE): Equity in earnings
of unconsolidated entities 104 1,816 Interest expense (46,268 )
(49,104 ) Loss on early extinguishment of liabilities, net (137 )
(3,281 ) Other (expense) income, net (33,742 ) 1,775 Loss
From Continuing Operations Before Income Taxes (164,597 ) (57,593 )
INCOME TAX EXPENSE (651 ) (456 ) Loss From Continuing Operations
(165,248 ) (58,049 ) Loss From Discontinued Operations, net of Tax
(4,041 ) (5,658 ) Net Loss (169,289 ) (63,707 ) LESS: NET LOSS
(INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 345 (52 ) LESS:
NET LOSS ATTRIBUTABLE TO REDEEMABLE NONCONTROLLING INTERESTS 398
397 NET LOSS ATTRIBUTABLE TO NGL ENERGY PARTNERS LP $
(168,546 ) $ (63,362 ) NET LOSS FROM CONTINUING OPERATIONS
ALLOCATED TO COMMON UNITHOLDERS $ (184,909 ) $ (68,099 ) NET LOSS
FROM DISCONTINUED OPERATIONS ALLOCATED TO COMMON UNITHOLDERS $
(3,639 ) $ (5,256 ) NET LOSS ALLOCATED TO COMMON UNITHOLDERS $
(188,548 ) $ (73,355 ) BASIC LOSS PER COMMON UNIT Loss From
Continuing Operations $ (1.52 ) $ (0.56 ) Loss From Discontinued
Operations, net of Tax (0.03 ) (0.05 ) Net Loss $ (1.55 ) $ (0.61 )
DILUTED LOSS PER COMMON UNIT Loss From Continuing Operations $
(1.52 ) $ (0.56 ) Loss From Discontinued Operations, net of Tax
(0.03 ) (0.05 ) Net Loss $ (1.55 ) $ (0.61 ) BASIC WEIGHTED AVERAGE
COMMON UNITS OUTSTANDING 121,544,421 120,535,909
DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING 121,544,421
120,535,909
EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE
CASH FLOW RECONCILIATION
(Unaudited)
The following table reconciles NGL’s net
loss to NGL’s EBITDA, Adjusted EBITDA and Distributable Cash
Flow:
Three Months Ended June 30, 2018
2017 (in thousands) Net loss $ (169,289 ) $ (63,707 )
Less: Net loss (income) attributable to noncontrolling interests
345 (52 ) Less: Net loss attributable to redeemable noncontrolling
interests 398 397 Net loss attributable to NGL Energy
Partners LP (168,546 ) (63,362 ) Interest expense 46,412 49,278
Income tax expense 651 459 Depreciation and amortization 61,575
68,063 EBITDA (59,908 ) 54,438 Net unrealized losses
(gains) on derivatives 18,953 (2,001 ) Inventory valuation
adjustment (1) (24,602 ) (19,182 ) Lower of cost or market
adjustments (413 ) 4,078 Loss (gain) on disposal or impairment of
assets, net 101,343 (11,213 ) Loss on early extinguishment of
liabilities, net 137 3,281 Equity-based compensation expense (2)
5,511 8,821 Acquisition expense (3) 1,252 (318 ) Revaluation of
liabilities (4) 800 — Gavilon legal matter settlement (5) 35,000 —
Other (6) 2,241 1,025 Adjusted EBITDA 80,314 38,929
Less: Cash interest expense (7) 43,840 46,371 Less: Income tax
expense 651 459 Less: Maintenance capital expenditures 12,390
6,527 Distributable Cash Flow $ 23,433 $
(14,428 )
___________
(1) Amount reflects the difference between the market value
of the inventory of NGL’s Refined Products and Renewables segment
at the balance sheet date and its cost. 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, 2018. 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, partially
offset by reimbursement for certain legal costs incurred in prior
periods. (4) Amounts represent the non-cash valuation
adjustment of contingent consideration liabilities, offset by the
cash payments, related to royalty agreements acquired as part of
acquisitions in our Water Solutions segment. (5) Represents
the accrual for the estimated cost of the settlement of the Gavilon
legal matter (see 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, 2018).
We have excluded this amount from Adjusted EBITDA as it relates to
transactions that occurred prior to our acquisition of Gavilon LLC
in December 2013. (6) Amount for the three months ended June
30, 2018 represents non-cash operating expenses related to our
Grand Mesa Pipeline, certain expenses related to discontinued
operations, unrealized loss on marketable securities and accretion
expense for asset retirement obligations. Amount for the three
months ended June 30, 2017 represents non-cash operating expenses
related to our Grand Mesa Pipeline and accretion expense for asset
retirement obligations. (7) 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, 2018 Crude
OilLogistics WaterSolutions
Liquids
RefinedProducts and Renewables
Corporateand Other
DiscontinuedOperations
Consolidated (in thousands) Operating
(loss) income $ (99,738 ) $ 969 $ 2,623 $ 29,022 $ (17,430 ) $ — $
(84,554 ) Depreciation and amortization 19,229 25,309 6,468 321 718
— 52,045 Amortization recorded to cost of sales 80 — 37 1,348 — —
1,465 Net unrealized losses on derivatives 7,412 9,110 2,337 — — —
18,859 Inventory valuation adjustment — — — (24,602 ) — — (24,602 )
Lower of cost or market adjustments — — (504 ) 91 — — (413 ) Loss
(gain) on disposal or impairment of assets, net 101,894 2,475 (10 )
(3,026 ) 2 — 101,335 Equity-based compensation expense — — — —
5,511 — 5,511 Acquisition expense — — 160 — 1,136 — 1,296 Other
income (expense), net 14 — 35 (17 ) (33,774 ) — (33,742 ) Adjusted
EBITDA attributable to unconsolidated entities — (54 ) — 476 (43 )
— 379 Adjusted EBITDA attributable to noncontrolling interest —
(112 ) (322 ) — — — (434 ) Revaluation of liabilities — 800 — — — —
800 Gavilon legal matter settlement — — — — 35,000 — 35,000 Other
1,550 100 17 150 — — 1,817 Discontinued operations — —
— — — 5,552 5,552
Adjusted EBITDA $ 30,441 $ 38,597 $ 10,841 $
3,763 $ (8,880 ) $ 5,552 $ 80,314
Three Months Ended June 30, 2017 Crude
OilLogistics WaterSolutions Liquids
RefinedProducts and Renewables
Corporateand Other
DiscontinuedOperations
Consolidated (in thousands) Operating income (loss) $
4,357 $ (1,154 ) $ (8,772 ) $ 14,496 $ (17,726 ) $ — $ (8,799 )
Depreciation and amortization 20,835 24,008 6,330 324 920 — 52,417
Amortization recorded to cost of sales 85 — 70 1,430 — — 1,585 Net
unrealized gains on derivatives (659 ) — (1,369 ) — — — (2,028 )
Inventory valuation adjustment — — — (19,182 ) — — (19,182 ) Lower
of cost or market adjustments — — 2,476 1,602 — — 4,078 Gain on
disposal or impairment of assets, net (3,559 ) (730 ) — (7,528 ) —
— (11,817 ) Equity-based compensation expense — — — — 8,821 — 8,821
Acquisition expense — — — — (318 ) — (318 ) Other income, net 44 18
4 168 1,541 — 1,775 Adjusted EBITDA attributable to unconsolidated
entities 3,822 154 — 891 11 — 4,878 Adjusted EBITDA attributable to
noncontrolling interest — (244 ) — — — — (244 ) Other 911 93 21 — —
— 1,025 Discontinued operations — — — —
— 6,738 6,738 Adjusted EBITDA $ 25,836
$ 22,145 $ (1,240 ) $ (7,799 ) $ (6,751 ) $ 6,738 $
38,929
OPERATIONAL DATA
(Unaudited)
Three Months Ended June 30, 2018
2017 (in thousands, except per day amounts)
Crude Oil Logistics: Crude oil sold (barrels) 11,225 10,020
Crude oil transported on owned pipelines (barrels) 9,987 6,766
Crude oil storage capacity - owned and leased (barrels) (1) 6,371
6,454 Crude oil inventory (barrels) (1) 1,164 1,778
Water
Solutions: Wastewater processed (barrels per day) Eagle Ford
Basin 279,184 220,579 Permian Basin 421,535 232,105 DJ Basin
136,115 112,437 Other Basins 83,038 58,979 Total 919,872
624,100 Solids processed (barrels per day) 5,899 4,168 Skim
oil sold (barrels per day) 3,615 2,525
Liquids:
Propane sold (gallons) 233,786 224,733 Butane sold (gallons)
113,025 91,517 Other products sold (gallons) 116,985 90,611 Liquids
storage capacity - owned and leased (gallons) (1) 438,968 453,971
Propane inventory (gallons) (1) 62,816 94,488 Butane inventory
(gallons) (1) 54,577 76,047 Other products inventory (gallons) (1)
6,357 6,977
Refined Products and Renewables: Gasoline
sold (barrels) 40,738 28,516 Diesel sold (barrels) 11,777 13,798
Ethanol sold (barrels) 544 1,014 Biodiesel sold (barrels) 328 627
Refined Products and Renewables storage capacity - leased (barrels)
(1) 9,523 9,225 Gasoline inventory (barrels) (1) 3,323 2,748 Diesel
inventory (barrels) (1) 965 1,973 Ethanol inventory (barrels) (1)
714 586 Biodiesel inventory (barrels) (1) 165 255
_______________
(1) Information is presented as of June 30, 2018 and June
30, 2017, respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180807005284/en/
NGL Energy Partners LPTrey Karlovich, 918-481-1119Chief
Financial Officer and Executive Vice PresidentTrey.Karlovich@nglep.comorLinda Bridges,
918-481-1119Senior Vice President - Finance and
TreasurerLinda.Bridges@nglep.com
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