NGL Energy Partners LP · NYSE:NGL
NGL Energy Partners LP — Citi MLP/Midstream Infrastructure Conference 2016
31 slides from NGL Energy Partners LP's conference presentation, August 2016
Slide 1: Citi MLP/Midstream Infrastructure Conference August 2016
Citi MLP/Midstream Infrastructure Conference August 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes “forward looking statements” within the meaning of federal securities laws. All statements, other than statements of historical fact, included in this presentation are forward looking statements, including statements regarding the Partnership’s f
Slide 3: NGL Energy Partners LP Overview
NGL Energy Partners LP Overview 3
Slide 4: Business Overview
Business Overview NGL Energy Partners LP Refined Products/ Crude Logistics Water Solutions Liquids Retail Propane Renewables Blending and Wholesale Crude Oil Volumes and Water Volumes and Primary Drivers: Butane/Propane Heating Demand Motor Fuels Demand Storage Crude Oil Price Demand and Storage Ben
Slide 5: Diversified Across Multiple Businesses and Producing Basins
Diversified Across Multiple Businesses and Producing Basins Bakken Shale Marcellus Shale Green River Basin Pinedale Anticline DJ Basin Jonah Field Niobrara Shale Wattenberg Field Mississippi Lime Granite Wash NGL Owned/Leased Assets NGL Utilized Assets Permian Basin NGL Assets NGL Rack Marketing Ter
Slide 6: NGL Business Strategy
NGL Operational Business Assumptions Strategy Transport crude oil from the well head to refiners Build a Diversified Refined Products from refiners to customers Vertically Integrated Wastewater from the wellhead to treatment for disposal, recycle or discharge Energy Business Natural Gas Liqu
Slide 7: NGL Operational Growth Projects and Recent Events
NGL Operational Growth Projects Assumptions and Recent Events Organic Growth On schedule for in-service date of November 1 Combination with Saddlehorn reduced capital requirements by approximately $200 million NGL will own 150,000 barrels per day of capacity on undivided joint interest pipelin
Slide 8: Grand Mesa Update
Segment Grand Mesa Contribution Update Grand Mesa Pipeline is a crude oil pipeline with truck stations at Lucerne and Riverside, Colorado. The pipeline will transport crude in a “batch system” from the DJ basin to Cushing, Oklahoma. The Platteville to Cushing section is a 20-inch undivided joint i
Slide 9: Operating Segments
Operating Segments Nd Energy Pe
Slide 10: Crude Oil Logistics Segment Contribution
Segment Crude OilContribution Logistics Overview Area of Operation Purchases and transports crude oil for resale to a pipeline injection point, storage terminal, barge loading facility, rail facility, refinery or trade hub Provides transportation, terminaling, and storage of crude oil and conden
Slide 11: Crude Oil Logistics Segment Contribution
Segment Crude OilContribution Logistics Adjusted EBITDA (In Millions) Crude BBL’s/Day (In Thousands) $150 400 $115 $100 300 $73 230 217 (1) $61 184 200 $50 $41 126 100 $- 0 FY 2014 FY 2015 FY 2016 FY 2017E FY 2014 FY 2015 FY 2016 FY 2017E $1 change in crude price impacts margins by approximately $
Slide 12: Water Solutions Segment Contribution
Segment Water Solutions Contribution Overview Area of Operation Provides services for the treatment, processing, and disposal of wastewater, and solids generated from oil and natural gas production Revenue streams from the disposal of wastewater, solids, water pipelines, truck and frac-tank wash
Slide 13: Water Solutions Segment Contribution
Segment Water Solutions Contribution Adjusted EBITDA (In Millions) Water Disposal BBL’s/Day (In Thousands) $150 570 585 $126 600 500 443 $100 400 $68 $72 $70 300 207 $50 200 100 $- 0 FY 2014 FY 2015 FY 2016 FY 2017E FY 2014 FY 2015 FY 2016 FY 2017E $1 change in Crude Price impacts Oil Revenue by $
Slide 14: Liquids Segment Contribution
Segment Contribution Liquids Overview Area of Operation Transports, stores, and markets NGLs to and from refiners, gas processors, propane wholesalers, propane retailers, proprietary terminals, petrochemical plants, diluent markets and other merchant users of NGLs Service offered in each of the
Slide 15: Liquids Segment Contribution
Segment Contribution Liquids Adjusted EBITDA (In Millions) Propane & Other NGL’s GAL’s/Day (In Thousands) $150 4,000 3,522 3,261 3,400 3,425 $101 3,000 $93 2,306 $100 $84 $85 2,155 2,262 1,942 2,000 $50 1,000 $- 0 FY 2014 FY 2015 FY 2016 FY 2017E FY 2014 FY 2015 FY 2016 FY 2017E Propane Other NGL's
Slide 16: Retail Propane Segment Contribution
Segment Retail Propane Contribution Overview Area of Operation Sells propane and distillates to end-users consisting of residential, agricultural, commercial and industrial customers 6th Largest Retail Propane business in the United States Geographic diversity mitigates weather risk No custo
Slide 17: Retail Propane Segment Contribution
Segment Retail Propane Contribution Adjusted EBITDA (In Millions) Propane & Distillate GAL’s/Day (In Thousands) $150 500 464 470 445 416 $97 $100 400 $100 $91 $79 300 $50 200 96 96 84 103 100 $- 0 FY 2014 FY 2015 FY 2016 FY 2017E FY 2014 FY 2015 FY 2016 FY 2017E Propane Distillate $0.01 change in
Slide 18: Refined Products/Renewables Segment Contribution
SegmentProducts/Renewables Refined Contribution Overview Area of Operation Purchase refined petroleum products primarily in the Gulf Coast, Southeast, and Midwest regions of the United States and schedule them for delivery primarily on the Colonial, Plantation, Magellan and NuStar pipelines Sell
Slide 19: Refined Products/Renewables Segment Contribution
SegmentProducts/Renewables Refined Contribution Adjusted EBITDA (In Millions) Refined Products/Renewables BBL’s/Day (In Thousands) $150 $150 $134 300 270 (1) 210 200 186 $100 $79 $50 100 27 15 16 16 10 $- 0 FY 2014 FY 2015 FY 2016 FY 2017E FY 2014 FY 2015 FY 2016 FY 2017E Refined Products Renewables
Slide 20: Financial Overview
Financial Overview Nd Energy Pariners LP
Slide 21: Financial Objectives
Financial Objectives The Partnership has made significant strides and will continue to Strong Balance pursue a flexible balance sheet with a leverage target of less than Sheet 3.25x on a compliance basis Goal of achieving investment grade rating Increasing fee-based business and long-term cont
Slide 22: NGL Finance Goals and Achievements
NGL Finance Goals and Achievements 1) Reduce Committed Capital Expenditure Requirements 2) Strengthen Balance Sheet and Enhance Liquidity Retired ~$100 million of NGL debt at ~60% of par Temporary reduction of the NGL common unit 3) Lower Current Cost of Capital Including Lower Debt and distribu
Slide 23: Performance Metrics
Performance Metrics (1) NGL Adjusted EBITDA (In Millions) Acquisition, Growth and Maintenance Capex (In Millions) $1,269 $500 $443 $424 $961 $271 $600 $491 $184 $284 $133 $160 $138 $59 $32 $35 $30 $16 $35 $24 $14 FY 2013 FY 2014 FY 2015 FY2016 FY 2017E IPO FY 2013 FY 2014 FY 2015 FY2016 FY 2017E Acq
Slide 24: Investment Highlights
NGL KeyOperational Assumptions Investment Highlights Multiple business segments reduce cash flow volatility and provides significant opportunities for growth in multiple regions and business segments Diversified and Presence in the highest rate of return oil & gas producing regions in North Amer
Slide 25: Appendix
Appendix Nd Energy Pariners LP
Slide 26: 1st Quarter Update
1st Quarter Update Segment Summary Quarterly Summary Performance ($’s In Millions ) – Refined Products/Renewables continues to outperform expectations 1Q '17 1Q '16 % Variance driven by growth in motor fuels demand Total Volume (In Thousand's) – Crude Logistics was impacted by lower crude producti
Slide 27: Credit Profile
Credit Profile Debt Maturities and Balances (In Millions) Balance Sheet Summary (In Thousands) $2,000 $1,827 6/30/2016 3/31/2016 Change $1,500 Cash and Equivalents $ 10,878 $ 28,176 $ (17,298) Other Current Assets 1,258,219 1,000,304 257,915 $1,000 Current Assets 1,269,097 1,028,480 240,617 $500 $38
Slide 28: NGL Organizational Chart
NGL Organizational Chart Members 100% NGL Energy Holdings LLC 105,501,315 C.U. Outstanding 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 29: 1Q'17 Adjusted EBITDA Walk
1Q’17 Adjusted EBITDA Walk (1) As Restated Three Months Ended June 30, 2016 2015 (in thousands) Net income (loss) $ 182,753 $ (25,007) Less: Net income attributable to noncontrolling interests (5,833) (4,350) Net income (loss) attributable to NGL ENERGY PARTNERS LP 176,920 (29,357) Interest expense
Slide 30: 1Q'17 Adjusted EBITDA by Segment
1Q’17 Adjusted EBITDA by Segment Three Months Ended June 30, 2016 Refined Products Crude Oil Water Retail and Corporate Logistics Solutions Liquids Propane Renewables and Other Consolidated (in thousands) Operating income (loss) $ (625) $ 79,464 $ (57) $ (2,502) $ 149,769 $ (32,149) $ 193,900 Deprec
Slide 31: 1Q'16 Adjusted EBITDA by Segment
1Q’16 Adjusted EBITDA by Segment (1) Three Months Ended June 30, 2015 Refined Products Crude Oil Water Retail and Corporate Logistics Solutions Liquids Propane Renewables and Other Consolidated (in thousands) Operating income (loss) $ 11,960 $ 10,447 $ (471) $ (700) $ 33,020 $ (55,466) $ (1,210) Dep
NGL Energy Partners — Citi MLP/Midstream Infrastructure Conference 2016 on 6ix