Seventh paragraph (under Crude Oil Logistics), second sentence
should read: During the three months ended March 31, 2021,
financial volumes on the Grand Mesa Pipeline averaged approximately
66,000 barrels per day compared to 131,000 barrels per day during
the prior year period, a decrease primarily due to the bankruptcy
court’s approved rejection of the Extraction transportation
agreement. Winter storm Uri in February 2021 reduced not only
volumes at the lease in all areas of our operations, including the
DJ Basin, but also refinery demand due to outages on the United
States Gulf Coast. (instead of During the three months ended March
31, 2021, financial volumes on the Grand Mesa Pipeline averaged
approximately 131,000 barrels per day during the prior year period,
a decrease primarily due to the bankruptcy court’s approved
rejection of the Extraction transportation agreement. Winter storm
Uri in February 2021 reduced not only volumes at the lease in all
areas of our operations, including the DJ Basin, but also refinery
demand due to outages on the United States Gulf Coast.)
The updated release reads:
NGL ENERGY PARTNERS LP ANNOUNCES FOURTH
QUARTER AND FULL YEAR FISCAL 2021 FINANCIAL RESULTS
NGL Energy Partners LP (NYSE:NGL) (“NGL,” “our,” “we,” or the
“Partnership”) today reported its fourth quarter and full year
fiscal 2021 results.
Highlights for the quarter and fiscal year ended March 31, 2021
include:
- Loss from continuing operations for the quarter ended March 31,
2021 of $229.2 million, including a loss of $63.1 million related
to the early repayment of the Partnership’s term loan facility, a
one-time $40.0 million consent payment to the holders of the
Partnership’s Class D Preferred Units and a non-cash impairment
charge of $84.3 million for certain inactive or underutilized
saltwater disposal facilities
- Loss from continuing operations of $637.4 million for Fiscal
2021, which includes the $383.6 million write down of goodwill and
certain intangibles related to the impact of the bankruptcy
rejection of transportation contracts with Extraction Oil &
Gas, Inc. (“Extraction”), certain costs associated with the
re-financing of our credit facility and term loan facility and the
impairment of certain assets
- Adjusted EBITDA from continuing operations for the fourth
quarter of Fiscal 2021 of $94.3 million, compared to $161.8 million
for the fourth quarter of Fiscal 2020, driven by lower volumes in
each of our operating segments
- Fiscal Year 2021 Adjusted EBITDA from continuing operations of
$448.3 million compared to $589.5 million in the prior year
- Completion of a private offering of $2.05 billion of 7.5%
senior secured notes due 2026 (“2026 Secured Notes”) and a new
$500.0 million asset-based revolving credit facility (“ABL
Facility”) on February 4, 2021. These transactions significantly
extended debt maturities as proceeds received were used to repay
all outstanding amounts under the Partnership’s previous $1.915
billion revolving credit facility due in October 2021 and its
$250.0 million term loan facility and terminate those agreements,
as well as to pay all fees and expenses associated with the
transactions.
- Announced suspension of all common unit and preferred unit
distributions until the Board of Directors of our general partner
deems it prudent to resume distributions and such distributions are
consistent with the terms of the Partnership’s various debt
agreements
“The Partnership is well positioned going into its Fiscal 2022,
as crude prices, producer volumes and demand for commodities have
all increased following a challenging Fiscal 2021. Our Water
Solutions segment continues to drive the growth of the Partnership
and we look to fully capitalize on our Delaware Basin platform in
the coming year. We are excited about rising and stabilizing crude
oil prices and the return of production growth in the DJ Basin and
expect to see increased producer demand for capacity on our Grand
Mesa Pipeline as well,” stated Mike Krimbill, NGL’s CEO. “Fiscal
2021 was significant for the Partnership as we successfully
extended our debt maturities and improved liquidity in a difficult
banking environment for energy companies and provided a secure
platform from which the Partnership can operate going forward. Once
again, we are looking forward to seeing increased utilization of
our existing asset platform to deliver excess free cash flow for
deleveraging and the eventual reinstatement of our distributions,”
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
March 31, 2021
March 31, 2020
Operating Income
(Loss)
Adjusted EBITDA
Operating Income
(Loss)
Adjusted EBITDA
(in thousands)
Water Solutions
$
(79,217
)
$
57,979
$
(207,444
)
$
72,140
Crude Oil Logistics
6,303
22,176
16,750
56,938
Liquids Logistics
19,103
26,467
29,204
47,424
Corporate and Other
(16,166
)
(12,343
)
(15,872
)
(14,740
)
Total
$
(69,977
)
$
94,279
$
(177,362
)
$
161,762
Water Solutions
The Partnership processed approximately 1.4 million barrels of
water per day during the quarter ended March 31, 2021, a 17.6%
decrease when compared to approximately 1.7 million barrels of
water per day processed during the quarter ended March 31, 2020.
This decrease was primarily due to lower development activity and
production volumes through the past year along with the impact from
winter storm Uri and the slower recovery of volumes in the Delaware
Basin. The decline was partially offset by new produced water
volumes received upon the completion and commencement of the
Partnership’s Poker Lake pipeline. The pipeline was successfully
completed in October 2020 with capacity of over 400,000 barrels per
day and connects into the Partnership’s integrated Delaware Basin
produced water pipeline infrastructure network.
Operating expenses in the Water Solutions segment decreased to
$0.29 per barrel compared to $0.38 per barrel in the comparative
quarter last year. This includes certain costs incurred in February
2021 related to winter storm Uri, combined with lower volumes. The
Partnership has taken significant steps to reduce operating costs
and continues to evaluate cost saving initiatives.
Crude Oil Logistics
Operating income for the fourth quarter of Fiscal 2021 decreased
compared to the same quarter in Fiscal 2020 due to lower activity
on our Grand Mesa Pipeline, revenues from which decreased by $19.1
million during the quarter ended March 31, 2021, compared to the
quarter ended March 31, 2020. During the three months ended March
31, 2021, financial volumes on the Grand Mesa Pipeline averaged
approximately 66,000 barrels per day compared to 131,000 barrels
per day during the prior year period, a decrease primarily due to
the bankruptcy court’s approved rejection of the Extraction
transportation agreement. Winter storm Uri in February 2021 reduced
not only volumes at the lease in all areas of our operations,
including the DJ Basin, but also refinery demand due to outages on
the United States Gulf Coast. This was partially offset by an
increase in prices during the fourth quarter of Fiscal 2021.
Liquids Logistics
Total product margin per gallon, excluding the impact of
derivatives, was $0.060 for the quarter ended March 31, 2021
compared to $0.044 in the same quarter of the prior year. Liquids
revenues increased due to increased commodity prices in the quarter
ended March 31, 2021 as a result of winter storm Uri in February,
which impacted the supply of natural gas liquids and refined
products. Refined products volume sold decreased during the quarter
ended March 31, 2021 and totaled approximately 188.4 million
gallons, compared to 292.1 million gallons in the same period in
the prior year, as demand for refined products has not fully
rebounded from the pandemic. Butane volumes also continued to be
impacted by a lack in demand. Propane volumes for the quarter ended
March 31, 2021 were down approximately 5.0% from the same period
last year due to less demand throughout the heating season in our
core operating areas.
Capitalization and Liquidity
Total liquidity (cash plus available capacity on our revolving
credit facility) was approximately $344.9 million as of March 31,
2021. The Partnership is in compliance with all of its debt
covenants and has no significant current debt maturities before
November 2023. The Partnership expects to generate excess cash flow
in Fiscal 2022, which will be utilized to repay outstanding
indebtedness and improve leverage.
Fourth Quarter Conference Call Information
A conference call to discuss NGL’s results of operations is
scheduled for 4:00 pm Central Time on Thursday, June 3, 2021.
Analysts, investors, and other interested parties may access the
conference call by dialing (800) 291-4083 and providing access code
7299585. An archived audio replay of the conference call will be
available for 7 days beginning at 1:00 pm Central Time on June 4,
2021, which can be accessed by dialing (855) 859-2056 and providing
access code 7299585.
NGL filed its Annual Report on Form 10-K for the year ended
March 31, 2021 with the Securities and Exchange Commission after
market on June 3, 2021. A copy of the Form 10-K can be found on the
Partnership’s website at www.nglenergypartners.com. Unitholders may also
request, free of charge, a hard copy of our Form 10-K and our
complete audited financial statements.
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 Logistics segment, as discussed
below. EBITDA and Adjusted EBITDA should not be considered
alternatives to net loss, loss 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 Logistics 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 Logistics 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, treats,
recycles and disposes of produced water generated as part of the
energy production process as well as transports, stores, markets
and provides other logistics services for crude oil and liquid
hydrocarbons.
For further information, visit the Partnership’s website at
www.nglenergypartners.com.
NGL ENERGY PARTNERS LP AND
SUBSIDIARIES
Unaudited Consolidated Balance
Sheets
(in Thousands, except unit
amounts)
March 31,
2021
2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
4,829
$
22,704
Accounts receivable-trade, net of
allowance for expected credit losses of $2,192 and $4,540,
respectively
725,943
566,834
Accounts receivable-affiliates
9,435
12,934
Inventories
158,467
69,634
Prepaid expenses and other current
assets
109,164
101,981
Total current assets
1,007,838
774,087
PROPERTY, PLANT AND EQUIPMENT, net of
accumulated depreciation of $776,279 and $529,068, respectively
2,706,853
2,851,555
GOODWILL
744,439
993,587
INTANGIBLE ASSETS, net of accumulated
amortization of $517,518 and $631,449, respectively
1,262,613
1,612,480
INVESTMENTS IN UNCONSOLIDATED ENTITIES
22,719
23,182
OPERATING LEASE RIGHT-OF-USE ASSETS
152,146
180,708
OTHER NONCURRENT ASSETS
50,733
63,137
Total assets
$
5,947,341
$
6,498,736
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable-trade
$
679,868
$
515,049
Accounts payable-affiliates
119
17,717
Accrued expenses and other payables
170,400
232,062
Advance payments received from
customers
11,163
19,536
Current maturities of long-term debt
2,183
4,683
Operating lease obligations
47,070
56,776
Total current liabilities
910,803
845,823
LONG-TERM DEBT, net of debt issuance costs
of $55,555 and $19,795, respectively, and current maturities
3,319,030
3,144,848
OPERATING LEASE OBLIGATIONS
103,637
121,013
OTHER NONCURRENT LIABILITIES
114,615
114,079
CLASS D 9.00% PREFERRED UNITS, 600,000 and
600,000 preferred units issued and outstanding, respectively
551,097
537,283
EQUITY:
General partner, representing a 0.1%
interest, 129,724 and 128,901 notional units, respectively
(52,189
)
(51,390
)
Limited partners, representing a 99.9%
interest, 129,593,939 and 128,771,715 common units issued and
outstanding, respectively
582,784
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
(266
)
(385
)
Noncontrolling interests
69,471
72,954
Total equity
948,159
1,735,690
Total liabilities and equity
$
5,947,341
$
6,498,736
NGL ENERGY PARTNERS LP AND
SUBSIDIARIES
Unaudited Consolidated
Statements of Operations
(in Thousands, except unit and
per unit amounts)
Three Months Ended March
31,
Year Ended March 31,
2021
2020
2021
2020
REVENUES:
Water Solutions
$
95,318
$
127,420
$
370,986
$
422,059
Crude Oil Logistics
493,467
501,466
1,721,636
2,549,767
Liquids Logistics
1,163,333
1,052,119
3,133,146
4,611,136
Other
313
239
1,255
1,038
Total Revenues
1,752,431
1,681,244
5,227,023
7,584,000
COST OF SALES:
Water Solutions
1,063
(38,571
)
9,622
(33,870
)
Crude Oil Logistics
462,732
446,571
1,515,993
2,293,953
Liquids Logistics
1,108,758
981,341
2,966,391
4,342,526
Other
453
437
1,816
1,774
Total Cost of Sales
1,573,006
1,389,778
4,493,822
6,604,383
OPERATING COSTS AND EXPENSES:
Operating
72,094
102,383
254,562
332,993
General and administrative
19,791
20,264
70,468
113,664
Depreciation and amortization
67,572
74,719
317,227
265,312
Loss on disposal or impairment of assets,
net
83,684
272,268
475,436
261,786
Revaluation of liabilities
6,261
(806
)
6,261
9,194
Operating Loss
(69,977
)
(177,362
)
(390,753
)
(3,332
)
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated
entities
804
1,014
1,938
1,291
Interest expense
(60,651
)
(49,370
)
(198,799
)
(181,184
)
(Loss) gain on early extinguishment of
liabilities, net
(60,984
)
1,341
(16,692
)
1,341
Other (expense) income, net
(39,563
)
717
(36,503
)
1,684
Loss From Continuing Operations Before
Income Taxes
(230,371
)
(223,660
)
(640,809
)
(180,200
)
INCOME TAX BENEFIT (EXPENSE)
1,154
651
3,391
(345
)
Loss From Continuing Operations
(229,217
)
(223,009
)
(637,418
)
(180,545
)
Loss From Discontinued Operations, net of
Tax
(23
)
(25,435
)
(1,769
)
(218,235
)
Net Loss
(229,240
)
(248,444
)
(639,187
)
(398,780
)
LESS: NET (INCOME) LOSS ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
(447
)
1,210
(632
)
1,773
NET LOSS ATTRIBUTABLE TO NGL ENERGY
PARTNERS LP
$
(229,687
)
$
(247,234
)
$
(639,819
)
$
(397,007
)
NET LOSS FROM CONTINUING OPERATIONS
ALLOCATED TO COMMON UNITHOLDERS
$
(253,180
)
$
(243,454
)
$
(730,683
)
$
(367,246
)
NET LOSS FROM DISCONTINUED OPERATIONS
ALLOCATED TO COMMON UNITHOLDERS
$
(23
)
$
(25,410
)
$
(1,767
)
$
(218,017
)
NET LOSS ALLOCATED TO COMMON
UNITHOLDERS
$
(253,203
)
$
(268,864
)
$
(732,450
)
$
(585,263
)
BASIC (LOSS) INCOME PER COMMON UNIT
Loss From Continuing Operations
$
(1.96
)
$
(1.89
)
$
(5.67
)
$
(2.88
)
Loss From Discontinued Operations, net of
Tax
$
—
$
(0.20
)
$
(0.01
)
$
(1.71
)
Net Loss
$
(1.96
)
$
(2.09
)
$
(5.68
)
$
(4.59
)
DILUTED (LOSS) INCOME PER COMMON UNIT
Loss From Continuing Operations
$
(1.96
)
$
(1.89
)
$
(5.67
)
$
(2.88
)
Loss From Discontinued Operations, net of
Tax
$
—
$
(0.20
)
$
(0.01
)
$
(1.71
)
Net Loss
$
(1.96
)
$
(2.09
)
$
(5.68
)
$
(4.59
)
BASIC WEIGHTED AVERAGE COMMON UNITS
OUTSTANDING
129,395,184
128,576,572
128,980,823
127,411,908
DILUTED WEIGHTED AVERAGE COMMON UNITS
OUTSTANDING
129,395,184
128,576,572
128,980,823
127,411,908
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
for the periods indicated:
Three Months Ended March
31,
Year Ended March 31,
2021
2020
2021
2020
(in thousands)
Net loss
$
(229,240
)
$
(248,444
)
$
(639,187
)
$
(398,780
)
Less: Net (income) loss attributable to
noncontrolling interests
(447
)
1,210
(632
)
1,773
Net loss attributable to NGL Energy
Partners LP
(229,687
)
(247,234
)
(639,819
)
(397,007
)
Interest expense
60,664
49,388
198,823
181,357
Income tax (benefit) expense
(1,153
)
(650
)
(3,444
)
365
Depreciation and amortization
66,921
74,098
314,476
265,147
EBITDA
(103,255
)
(124,398
)
(129,964
)
49,862
Net unrealized (gains) losses on
derivatives
(291
)
(46,408
)
47,366
(38,557
)
Inventory valuation adjustment (1)
(169
)
(4,121
)
1,224
(29,676
)
Lower of cost or net realizable value
adjustments
3,111
33,667
(30,102
)
31,202
Loss on disposal or impairment of assets,
net
83,677
292,726
476,601
464,483
Loss (gain) on early extinguishment of
liabilities, net
60,984
(1,341
)
16,692
(1,341
)
Equity-based compensation expense (2)
1,049
(699
)
6,727
26,510
Acquisition expense (3)
796
1,127
1,711
19,722
Revaluation of liabilities (4)
6,261
(806
)
6,261
9,194
Class D Preferred Unitholder consent fee
(5)
40,000
—
40,000
—
Other (6)
2,086
5,107
11,135
15,788
Adjusted EBITDA
$
94,249
$
154,854
$
447,651
$
547,187
Adjusted EBITDA - Discontinued Operations
(7)
$
(30
)
$
(6,908
)
$
(621
)
$
(42,270
)
Adjusted EBITDA - Continuing
Operations
$
94,279
$
161,762
$
448,272
$
589,457
Less: Cash interest expense (8)
57,178
45,848
185,138
170,254
Less: Income tax (benefit) expense
(1,154
)
(650
)
(3,391
)
345
Less: Maintenance capital expenditures
6,520
10,999
28,787
61,353
Less: Preferred unit distributions
paid
23,770
14,237
77,678
45,721
Less: Other (9)
(9
)
16
—
658
Distributable Cash Flow - Continuing
Operations
$
7,974
$
91,312
$
160,060
$
311,126
(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. 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 consolidated financial statements
included in the Partnership’s Annual Report on Form 10-K for the
year ended March 31, 2021. 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
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,
including Mesquite and Hillstone, along with amounts accrued
related to the LCT Capital, LLC legal matter (as discussed in the
footnotes to our consolidated financial statements included in the
Partnership’s Annual Report on Form 10-K for the year ended March
31, 2021).
(4)
Amounts for the three months ended March
31, 2021 and 2020 and year ended March 31, 2021 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. Amount for the year ended March 31, 2020 represents the
non-cash valuation adjustment of our contingent consideration
liability issued by us as part of our acquisition of Mesquite (as
discussed in the footnotes to our consolidated financial statements
included in the Partnership’s Annual Report on Form 10-K for the
year ended March 31, 2021), partially offset by 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 fee paid to the holders of
the Class D Preferred Units to obtain their consent in order to
complete the issuance of the 2026 Senior Secured Notes and the ABL
Facility (as discussed in the footnotes to our consolidated
financial statements included in the Partnership’s Annual Report on
Form 10-K for the year ended March 31, 2021).
(6)
Amounts for the three months and years
ended March 31, 2021 and 2020 represent non-cash operating expenses
related to our Grand Mesa Pipeline, unrealized losses on marketable
securities and accretion expense for asset retirement
obligations.
(7)
Amounts include the operations of TPSL,
Gas Blending and Mid-Con.
(8)
Amounts represent interest expense payable
in cash for the period presented, excluding changes in the accrued
interest balance.
(9)
Amounts represent cash paid to settle
asset retirement obligations.
ADJUSTED EBITDA RECONCILIATION BY
SEGMENT
(Unaudited)
Three Months Ended March 31,
2021
Water Solutions
Crude Oil Logistics
Liquids Logistics
Corporate and Other
Continuing Operations
Discontinued Operations (TPSL,
Mid-Con, Gas Blending)
Consolidated
(in thousands)
Operating (loss) income
$
(79,217
)
$
6,303
$
19,103
$
(16,166
)
$
(69,977
)
$
—
$
(69,977
)
Depreciation and amortization
48,427
10,334
7,026
1,785
67,572
—
67,572
Amortization recorded to cost of sales
—
—
77
—
77
—
77
Net unrealized losses (gains) on
derivatives
975
4,233
(5,499
)
—
(291
)
—
(291
)
Inventory valuation adjustment
—
—
(202
)
—
(202
)
—
(202
)
Lower of cost or net realizable value
adjustments
—
(213
)
3,357
—
3,144
—
3,144
Loss (gain) on disposal or impairment of
assets, net
80,357
(248
)
3,346
229
83,684
—
83,684
Equity-based compensation expense
—
—
—
1,049
1,049
—
1,049
Acquisition expense
10
—
—
786
796
—
796
Other income (expense), net
7
50
297
(39,917
)
(39,563
)
—
(39,563
)
Adjusted EBITDA attributable to
unconsolidated entities
1,136
—
8
(109
)
1,035
—
1,035
Adjusted EBITDA attributable to
noncontrolling interest
(330
)
—
(1,071
)
—
(1,401
)
—
(1,401
)
Revaluation of liabilities
6,261
—
—
—
6,261
—
6,261
Class D Preferred Unitholder consent
fee
—
—
—
40,000
40,000
—
40,000
Other
353
1,717
25
—
2,095
—
2,095
Discontinued operations
—
—
—
—
—
(30
)
(30
)
Adjusted EBITDA
$
57,979
$
22,176
$
26,467
$
(12,343
)
$
94,279
$
(30
)
$
94,249
Three Months Ended March 31,
2020
Water Solutions
Crude Oil Logistics
Liquids Logistics
Corporate and Other
Continuing Operations
Discontinued Operations (TPSL,
Mid-Con, Gas Blending)
Consolidated
(in thousands)
Operating (loss) income
$
(207,444
)
$
16,750
$
29,204
$
(15,872
)
$
(177,362
)
$
—
$
(177,362
)
Depreciation and amortization
49,522
17,531
6,896
770
74,719
—
74,719
Amortization recorded to cost of sales
—
—
87
—
87
—
87
Net unrealized (gains) losses on
derivatives
(35,748
)
(11,391
)
731
—
(46,408
)
—
(46,408
)
Inventory valuation adjustment
—
—
(1,886
)
—
(1,886
)
—
(1,886
)
Lower of cost or net realizable value
adjustments
—
29,469
4,213
—
33,682
—
33,682
Loss on disposal or impairment of assets,
net
264,306
284
7,678
—
272,268
—
272,268
Equity-based compensation expense
—
—
—
(699
)
(699
)
—
(699
)
Acquisition expense
92
—
—
1,035
1,127
—
1,127
Other income (expense), net
4
614
(20
)
119
717
—
717
Adjusted EBITDA attributable to
unconsolidated entities
1,467
—
29
(93
)
1,403
—
1,403
Adjusted EBITDA attributable to
noncontrolling interest
(613
)
—
(546
)
—
(1,159
)
—
(1,159
)
Revaluation of liabilities
(806
)
—
—
—
(806
)
—
(806
)
Intersegment transactions (1)
—
—
974
—
974
—
974
Other
1,360
3,681
64
—
5,105
—
5,105
Discontinued operations
—
—
—
—
—
(6,908
)
(6,908
)
Adjusted EBITDA
$
72,140
$
56,938
$
47,424
$
(14,740
)
$
161,762
$
(6,908
)
$
154,854
Year Ended March 31,
2021
Water Solutions
Crude Oil Logistics
Liquids Logistics
Corporate and Other
Continuing Operations
Discontinued Operations (TPSL,
Mid-Con, Gas Blending)
Consolidated
(in thousands)
Operating (loss) income
$
(92,720
)
$
(304,330
)
$
70,441
$
(64,144
)
$
(390,753
)
$
—
$
(390,753
)
Depreciation and amortization
222,107
60,874
29,184
5,062
317,227
—
317,227
Amortization recorded to cost of sales
—
—
307
—
307
—
307
Net unrealized losses (gains) on
derivatives
24,500
23,432
(566
)
—
47,366
—
47,366
Inventory valuation adjustment
—
—
1,197
—
1,197
—
1,197
Lower of cost or net realizable value
adjustments
—
(29,458
)
(617
)
—
(30,075
)
—
(30,075
)
Loss on disposal or impairment of assets,
net
76,942
384,143
3,350
11,001
475,436
—
475,436
Equity-based compensation expense
—
—
—
6,727
6,727
—
6,727
Acquisition expense
27
—
—
1,684
1,711
—
1,711
Other income (expense), net
266
1,565
1,301
(39,635
)
(36,503
)
—
(36,503
)
Adjusted EBITDA attributable to
unconsolidated entities
3,019
—
(3
)
(252
)
2,764
—
2,764
Adjusted EBITDA attributable to
noncontrolling interest
(1,647
)
—
(2,887
)
—
(4,534
)
—
(4,534
)
Revaluation of liabilities
6,261
—
—
—
6,261
—
6,261
Class D Preferred Unitholder consent
fee
—
—
—
40,000
40,000
—
40,000
Intersegment transactions (1)
—
—
(27
)
—
(27
)
—
(27
)
Other
2,751
8,317
100
—
11,168
—
11,168
Discontinued operations
—
—
—
—
—
(621
)
(621
)
Adjusted EBITDA
$
241,506
$
144,543
$
101,780
$
(39,557
)
$
448,272
$
(621
)
$
447,651
Year Ended March 31,
2020
Water Solutions
Crude Oil Logistics
Liquids Logistics
Corporate and Other
Continuing Operations
Discontinued Operations (TPSL,
Mid-Con, Gas Blending)
Consolidated
(in thousands)
Operating (loss) income
$
(173,064
)
$
117,768
$
142,411
$
(90,447
)
$
(3,332
)
$
—
$
(3,332
)
Depreciation and amortization
163,588
70,759
27,930
3,035
265,312
—
265,312
Amortization recorded to cost of sales
—
—
349
—
349
—
349
Net unrealized (gains) losses on
derivatives
(29,861
)
(11,315
)
2,619
—
(38,557
)
—
(38,557
)
Inventory valuation adjustment
—
—
(2,150
)
—
(2,150
)
—
(2,150
)
Lower of cost or net realizable value
adjustments
—
29,469
2,724
—
32,193
—
32,193
Loss (gain) on disposal or impairment of
assets, net
255,285
(1,144
)
7,645
—
261,786
—
261,786
Equity-based compensation expense
—
—
—
26,510
26,510
—
26,510
Acquisition expense
4,079
—
—
15,643
19,722
—
19,722
Other (expense) income, net
(448
)
717
21
1,394
1,684
—
1,684
Adjusted EBITDA attributable to
unconsolidated entities
2,152
—
24
(263
)
1,913
—
1,913
Adjusted EBITDA attributable to
noncontrolling interest
(1,210
)
—
(1,842
)
—
(3,052
)
—
(3,052
)
Revaluation of liabilities
9,194
—
—
—
9,194
—
9,194
Intersegment transactions (1)
—
—
2,099
—
2,099
—
2,099
Other
2,607
12,965
214
—
15,786
—
15,786
Discontinued operations
—
—
—
—
—
(42,270
)
(42,270
)
Adjusted EBITDA
$
232,322
$
219,219
$
182,044
$
(44,128
)
$
589,457
$
(42,270
)
$
547,187
(1)
Amount reflects the transactions with
TPSL, Mid-Con and Gas Blending that are eliminated in
consolidation.
OPERATIONAL DATA
(Unaudited)
Three Months Ended
Year Ended
March 31,
March 31,
2021
2020
2021
2020
(in thousands, except per day
amounts)
Water Solutions:
Produced water processed (barrels per
day)
Delaware Basin (1)
1,212,453
1,294,750
1,148,582
1,170,158
Eagle Ford Basin
63,871
197,587
78,397
246,784
DJ Basin
101,116
158,159
111,016
164,936
Other Basins
21,210
47,594
26,596
61,091
Total
1,398,650
1,698,090
1,364,591
1,642,969
Solids processed (barrels per day)
1,104
5,449
1,324
5,697
Skim oil sold (barrels per day)
2,525
3,539
1,957
3,397
Crude Oil Logistics:
Crude oil sold (barrels)
8,146
9,870
38,349
42,799
Crude oil transported on owned pipelines
(barrels)
5,961
10,971
32,797
45,884
Crude oil storage capacity - owned and
leased (barrels) (2)
5,239
5,362
Crude oil inventory (barrels) (2)
1,201
1,111
Liquids Logistics:
Refined products sold (gallons)
188,368
292,140
834,717
1,272,546
Propane sold (gallons)
477,652
502,977
1,364,224
1,478,759
Butane sold (gallons)
179,601
225,834
655,256
814,528
Other products sold (gallons)
119,654
127,286
471,245
602,872
Natural gas liquids and refined products
storage capacity - owned and leased (gallons) (2)
427,975
400,301
Refined products inventory (gallons)
(2)
1,223
2,391
Propane inventory (gallons) (2)
51,026
57,221
Butane inventory (gallons) (2)
20,066
24,808
Other products inventory (gallons) (2)
19,195
26,126
(1)
During the year ended March 31, 2020,
barrels per day of produced water processed by the assets acquired
in the Mesquite (acquired July 2, 2019) and Hillstone (acquired
October 31, 2019) transactions are calculated by the number of days
in which we owned the assets.
(2)
Information is presented as of March 31,
2021 and March 31, 2020, respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210603006036/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
NGL Energy Partners (NYSE:NGL)
Historical Stock Chart
From Aug 2024 to Sep 2024
NGL Energy Partners (NYSE:NGL)
Historical Stock Chart
From Sep 2023 to Sep 2024