NGL Energy Partners LP · NYSE:NGL
NGL Energy Partners LP — Investor Presentation (June 2021)
23 slides from NGL Energy Partners LP's investor presentation, June 2021
Slide 1: Investor Presentation June 2021
Investor Presentation June 2021
Slide 2: Company Information and Forward Looking Statements
Company Information NGL ENERGY PARTNERS LP FORWARD LOOKING STATEMENTS This presentation includes “forward looking statements” within the meaning NYSE Ticker NGL of federal securities laws. All statements, other than statements of Common Unit Price $3.13 historical fact, included in this presentation
Slide 3: Business Overview
Business Overview WATER SOLUTIONS CRUDE OIL LOGISTICS LIQUIDS LOGISTICS ▪ Transports, treats, recycles and disposes of ▪ Purchases crude oil from producers and ▪ Conducts wholesale operations for NGLs, produced and flowback water generated marketers and transports it to refineries or refined petrole
Slide 4: Business Assets
Business Assets Grand Mesa Pipeline Crude Oil Terminals Chesapeake Liquids Export Terminals West Memphis Liquids Terminals Delaware Basin Water Cushing Crude Oil Facility Tanks Pg 4
Slide 5: Business Strategy
Business Strategy Build a diversified midstream MLP providing multiple services • Transport water from the producer to treatment for disposal, recycle, or discharge • Transport crude oil from the wellhead to refiners • Transport natural gas liquids from processing facilities to end-users Operate in
Slide 6: Sustainability Approach
Sustainability Approach We recently published our 2020 Sustainability Report and are proud to share many of the activities we are undertaking that demonstrate our commitment to achieving sustainable results. • Our midstream operations generate a relatively low level of GHGs compared to our peers • N
Slide 7: Segment Overview
Segment Overview Pg 7
Slide 8: Water Solutions Segment
WATER SOLUTIONS SEGMENT Our Water Solutions segment transports, • Water pipelines owned by NGL • Existing recycle facility in treats, recycles and disposes of produced and and 3rd parties connected to Pinedale Anticline flowback water generated from crude oil and NGL facilities • 11.6 million barrel
Slide 9: Delaware Basin Overview
Delaware Basin Overview •58 Disposal Facilities & 119 Injection Wells (Active) Assets •>620 miles of large diameter pipeline Operating •Operating Capacity of ~3,700 MBPD Stats •~96% volumes delivered via pipeline •Acreage weighted average remaining Contracts contract term ~9 years •Acreage Dedicatio
Slide 10: Water Solutions Key Metrics
Water Solutions Key Metrics $300 $242 $250 $232 $0.62 $’s in millions $200 $166 Disposal Fee/BBL $150 $117 88% $100 $50 $63 $0.29 Operating Expense/BBL $- FY 2017 FY 2018 FY 2019 FY 2020 FY2021 FY21 Total Water Transported via Pipeline Adjusted EBITDA FY21 KEY STATISTICS 2,000,000 1,500,000 Disposal
Slide 11: Crude Oil Logistics Segment
CRUDE OIL LOGISTICS SEGMENT Our Crude Oil Logistics segment purchases • ~550 mile 20” crude oil pipeline • 3.6 MMbbls of storage in crude oil from producers and marketers and from the DJ Basin to Cushing, Cushing transports it to refineries for resale at pipeline OK • 1.6 MMbbls of storage in • 150,
Slide 12: Crude Oil Logistics Key Metrics
Crude Oil Logistics Key Metrics $250 $219 $200 $181 ~105 $’s in millions $145 Crude Oil Logistics KBBLs/Day $150 $118 60% $100 $50 $59 ~90 Grand Mesa KBBLs/Day $- FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY21 Grand Mesa Pipeline Utilization Rate Adjusted EBITDA FY21 KEY STATISTICS 150 Grand Mesa Volu
Slide 13: Liquids Logistics Segment
LIQUIDS LOGISTICS SEGMENT Our Liquids Logistics segment purchases • Fleet of ~5,100 railcars (owned • 28 Terminals gasoline, diesel, propane, butane and other and leased) • Chesapeake Terminal is one of products from refiners, processing plants, • 23 transloading units 3 active liquid export facilit
Slide 14: Liquids Logistics Key Metrics
Liquids Logistics Key Metrics Margin/gal FY21 Margin by Product $200 $182 $150 ~$0.057 ~$0.074 17% 9% $’s in millions $102 $102 Propane Butane $90 $100 $73 18% 40% $50 ~$0.048 ~$0.019 16% Other Products Refined Products $- FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Refined Products Propane Butane Other
Slide 15: Financial Overview
Financial Overview Pg 15
Slide 16: Balance Sheet Focused Financial Objectives
Financial Objectives Improved Credit Profile Lower Cost of Reduce Capital Leverage Balance Sheet Focused Reinstatement Cash Flow of Predictability Distributions Pg 16
Slide 17: Performance & Credit Metrics
Performance & Credit Metrics (1) Capitalization(1) (in thousands) $589 Debt 3/31/2021 12/31/2020 $419 $448 Credit Facility $ 4,000 $ 1,681,000 $’s in millions $381 $408 Secured Notes due 2026 2,050,000 - Secured Term Loan due 2024 - 250,000 7.500% Senior Notes due 2023 555,251 555,251 6.125% Senior
Slide 18: 4th Quarter Financial Update
4th Quarter Financial Update Segment Summary: Total Volume (In Thousands) 3/31/2021 12/31/2020 Crude Logistics (BBL's) ▪ Crude Oil Logistics results were negatively impacted by lower volumes on the Crude Oil Sold 8,146 10,733 Grand Mesa Pipeline due primarily to the rejection of our transportation c
Slide 19: Key Investment Highlights
Key Investment Highlights ✓ Strategically Located and Attractive Asset Base ✓ Vertical and Horizontal Integration ✓ Diversified Cash Flows ✓ Improving Credit Profile and Liquidity ✓ Experienced & Incentivized Management Team Pg 19
Slide 20: Appendix
Appendix Pg 20
Slide 21: 4Q'21 & 4Q'21YTD Adjusted EBITDA & DCF Walk
4Q’21 & 4Q’21YTD Adjusted EBITDA & DCF Walk Three Months Ended March 31, Twelve Months Ended March 31, 2021 2020 2021 2020 (in thousands) (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 N
Slide 22: 4Q'21 & 4Q'20 Adjusted EBITDA by Segment
4Q’21 & 4Q’20 Adjusted EBITDA by Segment Three Months Ended March 31, 2021 Discontinued Water Crude Oil Liquids Corporate Continuing Operations (TPSL, Mid- Solutions Logistics Logistics and Other Operations Con, Gas Blending) Consolidated (in thousands) Operating (loss) income $ (79,217) $ 6,303 $ 1
Slide 23: 4Q'21YTD & 4Q'20YTD Adjusted EBITDA by Segment
4Q’21YTD & 4Q’20YTD Adjusted EBITDA by Segment Year Ended March 31, 2021 Discontinued Water Crude Oil Liquids Corporate Continuing Operations (TPSL, Mid- Solutions Logistics Logistics and Other Operations Con, Gas Blending) Consolidated (in thousands) Operating (loss) income $ (92,720) $ (304,330) $
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