NGL Energy Partners LP · NYSE:NGL

NGL Energy Partners LP — Investor Presentation (May 2014)

23 slides from NGL Energy Partners LP's investor presentation, May 2014

  1. Slide 1: Energy Partners LP May 2014

    Energy Partners LP May 2014

  2. Slide 2: NGL Energy Partners Overview

    NGL Energy Partners Overview  NGL is a diversified midstream MLP that provides multiple services to producers and end-users  Transportation and marketing of crude oil  Water Solutions  Transportation and marketing of NGLs  Vertical integration allows NGL to capture margins across the entire val

  3. Slide 3: NGL Energy Partners Overview - Growth Since IPO

    NGL Energy Partners Overview - Growth Since IPO Operating Segments Segment Contribution 2015 (1) NGL Water Crude Retail Liquids Solutions Logistics Propane Financial Comparison (Pro-Forma Fiscal Year-End 2013 - 2015) ($ in millions) Market Capitalization EBITDA Distributable Cash Total Distributions

  4. Slide 4: Investment Highlights

    NGL KeyOperational Assumptions Investment Highlights  1,671% EBITDA growth from EBITDA of $24mm at IPO to $425mm Fiscal 2015 Successful Track  57% distribution per unit increase since IPO Record of Growth  Growth has been combination of organic and acquisitions (more than 30 completed since IPO)

  5. Slide 5: Diversified Across Multiple Businesses and Producing Basins

    Diversified Across Multiple Businesses and Producing Basins  NGL’s operations are geographically and operationally diversified across four attractive sub segments  Significant presence in the most economic oil and natural gas shale plays in the country  Coast-to-coast terminals and Retail Propane

  6. Slide 6: NGL Energy Partners Business Strategy

    NGL Energy Partners Business Strategy  Grow at attractive multiples through:  Organic projects  Acquisitions/Mergers  Emphasis on repeatable fee-based cash flows  Conservative capital structure with low leverage consistent with investment grade rating  Leverage at 2.75x – 3.25x  Strong common

  7. Slide 7: Focus on Stable and Consistently Growing Cash Flows

    Focus on Stable and Consistently Growing Cash Flows Historical Annualized Distributions Distributable Cash Flow Distribution Coverage Analysis Actual Guidance FY 2013 FY 2015 (1) Adjusted EBITDA $183.5 $425.0 Maintenance Capital Expenditures (13.8) (30.0) Interest Expense (28.9) (79.5) Total DCF $14

  8. Slide 8: Integrated Midstream Solutions

    Integrated Midstream Solutions Service a stable base of customers with integrated midstream services across the value chain Crude Logistics Pipeline LACT Units Storage Wellhead Truck Terminal Refiner Pipeline Rail Barge Water Solutions Truck SWD Wellhead Processing Plant Recycle Pipeline Discharge N

  9. Slide 9: Significant Operational Diversity

    Significant Operational Diversity NGL's Core Business Lines Crude Logistics Water Solutions NGL Liquids Retail  Purchase and transport  Treatment of oil and gas  Transport, handle, store  Distribute propane / crude oil from wellhead to wastewater NGLs distillates to residential, refinery  Water

  10. Slide 10: Experienced Management Team

    Experienced ExperiencedManagement Team Management Team  President and Chief Financial Officer of Energy Transfer Partners LP (NYSE: ETP) (2004 – 2007); former Director of Energy Transfer Michael Krimbill Equity, the General Partner of ETP  Served as the Chief Executive Officer and Chief Financial

  11. Slide 11: Business Segment Overview

    Business Segment Overview 11

  12. Slide 12: Crude Logistics

    Crude Logistics Segment Operations Area of Operation  Purchases and transports crude oil for resale to a pipeline injection Bakken point, storage terminal, barge Shale loading facility, rail facility, refinery or trade hub  Strategically deployed railcar fleet, DJ Basin tows, barges and trucks pro

  13. Slide 13: Crude Logistics - Asset Overview

    Crude Logistics Asset Overview  7.7 MMbbls of storage in Cushing (3.6MMbbls leased)  5 Gulf Coast terminals with aggregate capacity of ~850 Mbbls  Port of Catoosa, Oklahoma - storage services; truck and rail trans-loading to barges with access to Gulf Coast; 140Mbbls storage capacity Terminals 

  14. Slide 14: Water Treatment and Processing - Industry Overview

    Water Treatment and Processing Industry Overview  Oil and natural gas producers preserve cash for drilling by outsourcing the disposal and treatment of oilfield produced and flowback water (“waste water”)  Water quality is measured by amount of TDS (Total Dissolved Solids) which can include salts,

  15. Slide 15: Water Treatment and Processing - Operational Model

    Water Treatment and Processing Operational Model  Treatment and Disposal – Company-owned disposal facilities provide producers affordable well-disposal of wastewater generated from oil and natural gas production and drilling activities – Water treatment process separates solids and hydrocarbons fro

  16. Slide 16: Water Treatment and Processing - Basin Characteristics

    Water Treatment and Processing Basin Characteristics Water Quality Geology Regulatory Environment  Low permeability for disposal wells,  State of Wyoming regulates air, water 200-400 bpd quality and pressure  TDS 12,000 mg/L Anticline  Limited private land  Regulated capacity of discharged  Ce

  17. Slide 17: Water Solutions

    Water Solutions Overview Segment Operations Area of Operation  Provides services for the treatment, processing, and disposal of wastewater Bakken generated from oil and natural gas Shale Marcellus production Shale Pinedale Anticline Green River  Generates fee-based revenue from the Basin Jonah Fie

  18. Slide 18: Water Solutions - Regional Operations

    Water Solutions Regional Operations Anticline DJ Basin Eagle Ford Permian  Treatment of oil and gas  Leading provider of oil and  Growing presence in one of  Expansive footprint across waste-water for recycling, gas waste-water disposal the most active oil plays in the the Eagle Ford Overview cl

  19. Slide 19: NGL Liquids

    NGL Liquids Overview Area of Operation 19

  20. Slide 20: NGL Liquids

    NGL Liquids Terminals and Wholesale Supply & Marketing Segment Railcar Segment  22 terminals serving over 300 customers  Transports and markets NGLs to and from refiners, – 17 terminals with rail loading capability gas processors, propane wholesalers, proprietary terminals, petrochemical plants, d

  21. Slide 21: Retail Propane

    Retail Propane Overview Segment Operations Area of Operation  Sell propane and petroleum distillates to end-users consisting of residential, agricultural, commercial and industrial customers  Geographic diversity mitigates weather risk  Less volatility from warm weather as Retail Propane margins

  22. Slide 22: Retail Propane - What Sets Us Apart

    Retail Propane What Sets Us Apart  Operational focus on regions with the highest number of degree days – North East, Upper Midwest and Pacific NW Geographic Focus  In warmer weather, gross margins temporarily expand to recoup a portion of revenues lost to volume declines Customer Base  Retain and

  23. Slide 23: Key Takeaways

    Key Takeaways  Compelling investment opportunity with attractive combination of yield and growth – Distribution growth of 15% for calendar 2014 and 10% thereafter – 63% distribution per unit increase since IPO – NGL total return 106% since IPO vs. 52% for Alerian index over the same period  Target

NGL Energy Partners — Investor Presentation (May 2014) on 6ix