NGL Energy Partners LP · NYSE:NGL
NGL Energy Partners LP — Investor Presentation (November 2019)
29 slides from NGL Energy Partners LP's investor presentation, November 2019
Slide 1: NGL Energy Partners LP Investor Presentation November 2019
NGL Energy Partners LP Investor Presentation November 2019
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 federal securities laws. All statements, other than statements of historical fact, Unit Price(1) $10.37 included in this presentation ar
Slide 3: Business Overview
Business Overview ▪ Provides services for the treatment, processing, and disposal of wastewater and solids generated from oil and natural gas production ▪ Water recycling expertise, history of cleaning wastewater to drinking quality for 10 years Water Solutions ▪ Revenue streams from the disposal of
Slide 4: Business Diversity
Business Diversity Water Solutions Crude Logistics Liquids and Marketing Water Volumes, Crude Oil Butane Blending Primary Drivers: Rig Count and Production and and Export, Crude Oil Price Transportation/ Weather and NGL Storage Demand Production Benefits From: Higher Prices Higher Prices Lower Price
Slide 5: Business Strategy
Business Strategy ▪ Transport crude oil from the wellhead to refiners Build a Diversified ▪ Wastewater from the wellhead to treatment for disposal, recycle or discharge Vertically Integrated Energy Business ▪ Natural Gas Liquids from fractionators / hubs to refineries and end users ▪ Refined Product
Slide 6: Balance Sheet Management Review NGL's Transformation
Balance Sheet Management Review NGL’s Transformation Segments & Assets as of September 30, 2016 - 5 Diversified Business Units 1) Refined Products/Renewables (38%) 2) Liquids (22%) 3) Retail Propane (17%) 4) Water Solutions (14%) 5) Crude Logistics (9%) Southeast Propane Terminals Permian Basin - Mi
Slide 7: Water Solutions Segment Overview
Water Solutions Segment Overview 7
Slide 8: Water Solutions Platform
Water Solutions Platform Our Water Solutions segment provides services for the treatment and disposal of wastewater generated from crude oil and natural gas production and for the disposal of solids such as tank bottoms, drilling fluids and drilling muds. In addition, our Water Solutions segment sel
Slide 9: Delaware Basin
Delaware Basin SWD ▪ NGL has 58 active Salt Water Disposal Facilities & Facilities 112 active Disposal Wells & ➢ 31 Facilities in Texas and 27 in New Mexico Disposal ▪ NGL has 1 Solids Disposal Facility in-service at its Wells Orla location Water ▪ NGL has 100 pipeline tie-ins currently in-service i
Slide 10: Hillstone Environmental Services: Acquisition Highlights
Hillstone Environmental Hillstone Environmental Services: Services: Acquisition Acquisition Highlights Highlights On October 31st, 2019, NGL Energy Partners announced the closing of all the equity interests of Hillstone Environmental Partners, LLC (“Hillstone”) for ~$600 million (1) Transaction Over
Slide 11: Hillstone Enhances NGL's Delaware Basin Franchise
Hillstone Hillstone Enhances Enhances NGL’s NGL’s Delaware Delaware Basin Franchise Basin Franchise NGL Status Quo NGL Pro Forma Hillstone (2) Contract Length (1) ~5.8 years ~10.3 years (+78%) MVC Volumes 172 Mbpd 332 Mbpd (+93%) Acreage Dedications ~140,000 ~252,000 (+80%) % Volumes via Pipeline ~7
Slide 12: Water Solutions Financial Overview
Water Solutions Financial Overview Segment EBITDA FY 2020 Forecast Assumptions $350 ▪ Primary growth focused in the Delaware Basin (New Mexico) $300 $270 - $300 ▪ Blended disposal rate of ~$0.60/bbl and operating expense of ~$0.33/bbl for each disposal volume, inclusive of Mesquite and Hillstone $25
Slide 13: Crude Logistics Platform
Crude Logistics Platform Our Crude Oil Logistics segment purchases crude oil from producers and transports it to refineries or for resale at pipeline injection stations, storage terminals, barge loading facilities, rail facilities, and other trade hubs, and provides storage, terminaling, trucking, m
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 EBITDA FY 2020 Forecast Assumptions $250 ▪ Grand Mesa Pipeline $200 - $220 – Total volumes average ~129kbpd $200 $181 – Assume 3% increase to rates per FERC oil pipeline index starting July 1, 2019 $150 $118 ▪ Crude Oil Marketing/Transportation $100 $73
Slide 16: Liquids and Marketing Platform
Liquids and Marketing Platform Our Liquids segment provides natural gas liquids procurement, storage, transportation, and supply services to customers through assets owned by us and third parties. We also sell butanes and natural gasolines to refiners and producers for use as blending stocks and dil
Slide 17: Liquids and Marketing Financial Overview
Liquids and Marketing Financial Overview Segment EBITDA (1) FY 2020 Forecast Assumptions (1) ▪ Propane/Butane Wholesale $160 $134 – Assumes a normal winter for volume and pricing $140 $125 – Fee-based business makes up 10%-15% of gross margin $120 $101 ▪ NGL Terminals/Sawtooth $100 $93 $90 $85 - $95
Slide 18: TPSL Divestiture Highlights
TPSL Divestiture Highlights Transaction Highlights Sold Assets - Map Transaction represents further progress toward NGL's capital allocation strategy Closed the sale of certain Refined Products / Renewables segment assets, including but not limited to inventory and net working capital, for total
Slide 19: Financial Overview
Financial Overview 19
Slide 20: Financial Objectives
Financial Objectives ▪ The Partnership has made significant strides with ~$2.1 billion in asset sales since December 2017 (proceeds used to pay down Strong Balance indebtedness) and will look to maintain a flexible balance sheet with a Sheet leverage target of less than 4.00x on a total leverage bas
Slide 21: Performance Metrics
Performance Metrics Adjusted EBITDA (In Millions) Acquisition, Growth and Maintenance Capex (In Millions) $540 - 615 ~$1,600 $443 $424 $440 $1,269 $408 $381 $961 $271 $600 $419 $334 $349 $230 - $330 $133 $160 $138 $164 $162 $32 $35 $30 $26 $50 $38 $49 $50- $60 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Slide 22: Credit Profile
Credit Profile Debt Maturities as of 9/30/19 (In Millions) Pro Forma Debt & Preferred Equity Balances as of 9/30/19(2) $1,600 (In Thousands) 9/30/2019 6/30/2019 $1,093 $1,200 Debt Expansion Capital Borrowings $ 450,000 $ 260,000 $800 $607 Working Capital Borrowings 643,000 895,000 $389 $450 Secured
Slide 23: 2nd Quarter Update
2nd Quarter Update Segment Summary Quarterly Summary Performance ($’s In Millions) ▪ Crude Oil Logistics performed in line with expectations primarily due to strong results from Sep-19 Sep-18 Variance(%) Grand Mesa as the pipeline continues to benefit from increased production out of the DJ Basin. T
Slide 24: Key Investment Highlights
Key Investment Highlights ▪ Multiple business segments with significant geographic diversity reduce cash flow volatility Diversified and ▪ Presence in the highest rate of return oil & gas producing regions in North America as well as the highest Attractive Asset Base growing population areas for con
Slide 25: Appendix
Appendix 25
Slide 26: NGL Organizational Chart
NGL Organizational Chart Members 100% 128,040,420 C.U. Outstanding NGL Energy Holdings LLC Limited Partners G.P. (DE LLC) 0.1% GP Interest 99.9% LP Interest IDR’s NGL Energy Partners LP (NYSE: NGL) (DE LP) 100% NGL Energy Operating LLC (DE LLC) NGL Refined NGL Crude Logistics NGL Water Solutions NGL
Slide 27: 2Q'20 Adjusted EBITDA & DCF Walk
2Q’20 Adjusted EBITDA & DCF Walk Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 (in thousands) (in thousands) Net (loss) income $ (201,366) $ 354,939 $ (193,327) $ 185,650 Less: Net loss attributable to noncontrolling interests 129 518 397 863 Less: Net loss attr
Slide 28: 2Q'20 & 2Q'19 Adjusted EBITDA by Segment
2Q’20 & 2Q’19 Adjusted EBITDA by Segment Three Ended September 30, 2019 Refined Products Corporate Continuing Discontinued Crude Oil Logistics Water Solutions Liquids and Renewables and Other Operations Operations (TPSL) Consolidated (in thousands) Operating income (loss) $ 38,520 $ 21,274 $ 8,397 $
Slide 29: 2Q'20 YTD & 2Q'19 YTD Adjusted EBITDA by Segment
2Q’20 YTD & 2Q’19 YTD Adjusted EBITDA by Segment Six Months Ended September 30, 2019 Refined Products Corporate Continuing Discontinued Crude Oil Logistics Water Solutions Liquids and Renewables and Other Operations Operations (TPSL) Consolidated (in thousands) Operating income (loss) $ 72,322 $ 34,
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