NGL Energy Partners LP · NYSE:NGL
NGL Energy Partners LP — Investor Presentation (February 2021)
26 slides from NGL Energy Partners LP's investor presentation, February 2021
Slide 1: Investor Presentation February 2021
Investor Presentation February 2021
Slide 2: Company Information and Forward Looking Statements
Company Information NGL Energy Partners LP Forward Looking Statements NYSE Ticker NGL This presentation includes “forward looking statements” within the meaning of Unit Price (1) $2.63 federal securities laws. All statements, other than statements of historical fact, included in this presentation ar
Slide 3: Business Overview
Business Overview Water Solutions Crude Logistics Liquids & Refined Products ▪ Transports, treats, recycles and ▪ Purchases crude oil from producers ▪ Conducts wholesale operations for disposes of produced and flowback and marketers and transports it to NGLs, refined petroleum products water generat
Slide 4: Balance Sheet Management Review: NGL's Transformation & Simplification
Balance Sheet Management Review NGL’s Transformation & Simplification Segment EBITDA Breakdown as of March 31, 2018* Segment EBITDA Breakdown as of March 31, 2020* Major Divestitures Major Acquisitions Liquids & ▪ Retail Propane Refined ▪ Water Solutions Liquids & 16% 29% 31% Water 34% Refined ➢ Mes
Slide 5: Recent Transactions
Recent Transactions ▪ Completed offering of $2.05bn of 7.500% 1st Lien Senior Secured Notes due 2026 ▪ Proceeds from the notes offering were primarily used to fully repay all existing borrowings under the Company’s Revolving Credit Facility due 2021 and to redeem the Company’s $250mm of 1st Lien Ter
Slide 6: Business Strategy
Business Strategy Build a diversified ▪ Transport crude oil from the wellhead to refiners midstream MLP ▪ Transport water from the producer to treatment for disposal, recycle, or discharge providing multiple services ▪ Transport natural gas liquids from processing plants and supply hubs to end users
Slide 7: Water Solutions Segment Overview
Water Solutions Segment Overview 7
Slide 8: Water Solutions Platform
Water Solutions Platform Our Water Solutions segment transports, treats, recycles and disposes of produced and flowback water generated from crude oil and natural gas production, disposes of solids such as tank bottoms, drilling fluids and drilling muds and performs other ancillary services, such as
Slide 9: NGL's S.W.D. Mission
NGL’s S.W.D. Mission Sustainable Water Developments Safer Water Distribution Scientific Water Discoveries ▪ Reduce ecological footprint ▪ Operate water systems that ▪ Support scientific research and support the oil & gas increase safety and protect and technological industry and local the environmen
Slide 10: Delaware Basin
Delaware Basin SWD ▪ NGL has 58 active Salt Water Disposal Facilities & 119 Facilities & completed Disposal Wells Disposal ➢ 91 wells in Texas and 28 in New Mexico Wells ▪ NGL has 1 Solids Disposal Facility in-service at its Orla location Water ▪ >600 miles of large-diameter water pipeline projects
Slide 11: Hillstone Enhances NGL's Delaware Basin Franchise
Hillstone Enhances NGL’s Delaware Basin NGL’sFranchise Delaware Basin Franchise NGL Delaware Basin Metrics Contract Length (1) ~9 years Current MVC Volumes >330 Mbpd Acreage Dedications ~325,000 % Volumes via Pipeline ~97% NGL’s Cleveland facility Disposal Facilities / 58 Disposal Facilities / # of
Slide 12: Water Solutions Financial Overview
Water Solutions Financial Overview Segment Adjusted EBITDA FY 2021 YTD Statistics $300 ▪ Blended disposal rate of ~$0.62/bbl and operating expense of ~$0.28/bbl for each disposal volume $250 $232 ▪ Average skim oil percentage at 0.13% of disposal volumes, $200 ▪ Average realized skim oil price of $6
Slide 13: Crude Logistics Platform
Crude Logistics Platform Our Crude Oil Logistics segment purchases crude oil from producers and marketers and transports it to refineries for resale at pipeline injection stations, storage terminals, barge loading facilities, rail facilities, refineries, and other trade hubs, and provides storage, t
Slide 14: Grand Mesa Pipeline
Grand Mesa Pipeline ▪ ~550 miles of 20” Crude oil pipeline from the DJ Basin to Cushing, OK Grand Mesa Share ▪ NGL/Grand Mesa have 37.5% undivided joint interest DJ of Capacity ➢ 150,000 BPD capacity Basin ▪ Lucerne & Riverside Terminals in Weld County, CO (100% NGL/Grand Mesa owned) Origin Station
Slide 15: Crude Oil Logistics Financial Overview
Crude Oil Logistics Financial Overview Segment Adjusted EBITDA (1) FY 2021 YTD Statistics ▪ Grand Mesa Pipeline $250 $219 – Total financial volumes average ~103.0kbpd $200 $181 – EBITDA impact from XOG bankruptcy of ~$45mm ▪ Crude Oil Logistics/Transportation $150 – Total physical volumes average ~1
Slide 16: Liquids and Refined Products Platform
Liquids and Refined Products Platform Our Liquids and Refined Products segment purchases gasoline, diesel, propane, butane and other products from refiners, processing plants, producers and other parties, and sells the products to retailers, wholesalers, refiners and petrochemical plants throughout
Slide 17: Liquids and Refined Products Financial Overview
Liquids and Refined Products Financial Overview Segment Adjusted EBITDA(1) FY 2021 YTD Statistics ▪ Propane/Butane Wholesale $200 $182 – Propane sold of ~887 million gallons at ~$0.049/gal margin – Butane sold of ~476 million gallons at ~$0.078/gal margin $150 – Other Products sold of ~352 million g
Slide 18: Financial Overview
Financial Overview 18
Slide 19: Financial Objectives
Financial Objectives ▪ The Partnership will look to maintain a flexible balance sheet with a Strong Balance leverage target of less than 4.00x on a total leverage basis Sheet ▪ Goal of achieving investment grade rating ▪ Focus on increasing fee-based business and long-term contracts with Cash Flow h
Slide 20: Performance & Credit Metrics
Performance & Credit Metrics (1) (3) Adjusted EBITDA (In Millions) Debt and Preferred Equity Balances (In Thousands) Pro Forma $589 $570-$600 12/31/2020 9/30/2020 $500 Debt $440 $408 Expansion Capital Borrowings $ - $ 1,466,000 Working Capital Borrowings - 236,500 ABL Facility (Balance at Closing) -
Slide 21: 3rd Quarter Financial Update
3rd Quarter Financial Update Segment Summary: Quarterly Summary Performance ($’s In Millions) ▪ Crude Oil Logistics results were negatively impacted by lower volumes on the Grand Mesa Pipeline due primarily to the rejection of our transportation contracts with Extraction (“XOG”) as well as decreased
Slide 22: Key Investment Highlights
Key Investment Highlights ▪ Multiple business segments with significant geographic diversity reducing cash flow volatility Diversified and ▪ Presence in the highest rate of return oil & gas producing regions in North America Attractive Asset Base ▪ Natural hedge between certain business segments red
Slide 23: Appendix
Appendix 23
Slide 24: 3Q'21 & 3Q'21YTD Adjusted EBITDA & DCF Walk
3Q’21 & 3Q’21YTD Adjusted EBITDA & DCF Walk Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 (in thousands) (in thousands) Net (loss) income $ (380,530) $ 42,991 $ (409,947) $ (150,336) Less: Net loss (income) attributable to noncontrolling interests 34 166 (185) 56
Slide 25: 3Q'21 & 3Q'20 Adjusted EBITDA by Segment
3Q’21 & 3Q’20 Adjusted EBITDA by Segment Three Months Ended December 31, 2020 Discontinued Liquids and Corporate and Continuing Operations (TPSL, Mid- Crude Oil Logistics Water Solutions Refined Products Other Operations Con, Gas Blending) Consolidated (in thousands) Operating (loss) income $ (382,1
Slide 26: 3Q'21YTD & 3Q'20YTD Adjusted EBITDA by Segment
3Q’21YTD & 3Q’20YTD Adjusted EBITDA by Segment Nine Months Ended December 31, 2020 Discontinued Liquids and Corporate and Continuing Operations (TPSL, Mid- Crude Oil Logistics Water Solutions Refined Products Other Operations Con, Gas Blending) Consolidated (in thousands) Operating (loss) income $ (
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