NGL Energy Partners LP · NYSE:NGL
NGL Energy Partners LP — Investor Presentation (June 2019)
32 slides from NGL Energy Partners LP's investor presentation, June 2019
Slide 1: NGL Energy Partners LP Investor Presentation June 2019
NGL Energy Partners LP Investor Presentation June 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) $14.73 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 Refined Products/ Water Solutions Crude Logistics Liquids Renewables Water Volumes, Crude Oil Butane Blending Motor Fuels Primary Drivers: Rig Count and Production and and Export, Supply/Demand Crude Oil Price Transportation/ Weather and NGL and Basis Storage Demand Production Dif
Slide 5: Diversified Across Multiple Businesses and Production Basins
Diversified Across Multiple Businesses and Production 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 Permian Basin Liquids Terminals Liquids Import & Export Facility W
Slide 6: 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 7: Water Solutions Segment Overview
Water Solutions Segment Overview 7
Slide 8: Water Solutions Platform (Pre-Mesquite)
Water Solutions Platform (Pre-Mesquite) 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 Soluti
Slide 9: Mesquite SWD: Acquisition Highlights
Mesquite SWD: Acquisition Highlights On May 14th, 2019, NGL Energy Partners announced it has agreed to acquire Mesquite Disposals Unlimited, LLC., a Northern Delaware Basin Water Disposal Company, for approximately $890 million Transaction Overview Asset Overview The acquisition represents substan
Slide 10: Delaware Basin
Delaware Basin Salt Water NGL has 26 active Salt Water Disposal Facilities & 49 active Disposal Disposal Wells Facilities & 20 Facilities in Texas and 6 in New Mexico Mesquite acquisition will add 35 Salt Water Disposal Disposal Wells Facilities NGL has 1 Solids Disposal Facility in-service
Slide 11: Eagle Ford
Eagle Ford Salt Water NGL has 24 active Salt Water Disposal Facilities & 37 Disposal active Disposal Wells Facilities & NGL has 4 Solids Disposal Facilities in-service across the Disposal Eagle Ford basin Wells Water NGL has 13 pipeline tie-ins currently in-service in the Pipelines Eagle Ford
Slide 12: DJ Basin
DJ Basin Salt Water NGL has 13 active Salt Water Disposal Facilities & 31 Disposal active Disposal Wells Facilities & NGL has 2 Solids Disposal Facilities in-service across the Disposal DJ basin Wells Water NGL has 7 pipeline tie-ins currently in-service in the DJ Pipelines Basin 3 additiona
Slide 13: Midland Basin
Midland Basin Salt Water NGL has 15 active Salt Water Disposal Facilities & 15 Disposal active Disposal Wells Facilities & NGL has 2 Solids Disposal Facilities in-service across the Disposal Midland basin Wells Water NGL has pipeline 12 tie-ins currently in-service in the Pipelines Midland bas
Slide 14: Water Solutions Financial Overview
Water Solutions Financial Overview Segment EBITDA FY 2020 Forecast Assumptions $350 $290 - $320 Primary growth focused in the Delaware Basin (New Mexico) $300 Blended disposal rate of ~$0.60/bbl and operating expense of $250 Mesquite Acquisition ~$0.30/bbl for each disposal volume, inclusive of
Slide 15: 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 16: 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 17: Crude Oil Logistics Financial Overview
Crude Oil Logistics Financial Overview Segment EBITDA FY 2020 Forecast Assumptions $250 Grand Mesa Pipeline $190 - $210 – 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 18: Liquids Platform
Liquids 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 diluent and assis
Slide 19: Liquids Financial Overview
Liquids Financial Overview Segment EBITDA FY 2020 Forecast Assumptions $120 Propane/Butane Wholesale $101 – Assumes a normal winter for volume and pricing $100 $93 $90 – Fee-based business makes up 10%-15% of gross margin $87 $75 - $90 NGL Terminals $80 $64 – Over 50% of EBITDA from multi-year 3
Slide 20: Refined Products & Renewables Platform
Refined Products & Renewables Platform Our Refined Products and Renewables segment conducts gasoline, diesel, ethanol, and biodiesel marketing operations. In addition, in certain storage locations, our Refined Products and Renewables segment may also purchase unfinished gasoline blending components
Slide 21: Financial Overview
Financial Overview 21
Slide 22: Financial Objectives
Financial Objectives The Partnership has made significant strides with ~$1.8 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 3.25x on a compliance basis
Slide 23: Performance Metrics
Performance Metrics Adjusted EBITDA (In Millions) Acquisition, Growth and Maintenance Capex (In Millions) $1,269 $565 - $650 $961 $970 $443 $424 $440 $408 $381 $600 $271 $419 $334 $349 $230 - $330 $160 $164 $162 $133 $138 $32 $35 $30 $26 $50 $38 $49 $50 - $60 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Slide 24: FY 2019 to FY 2020E EBITDA Walk
FY 2019 to FY 2020E EBITDA Walk FY 2019 to FY2020E EBITDA by Segment(1) (In Millions) FY 2020 Forecast Assumptions Crude Logistics – Grand Mesa volumes average $800 ~129kbpd – 3% increase to Grand Mesa rates ~$90 $21 ($5) $565 - $650 per FERC oil pipeline index ($8) $600 starting July 1, 2019 $57
Slide 25: Credit Profile
Credit Profile As Adjusted Debt Maturities as of 3/31/19 (In Millions) Pro Forma Debt & Preferred Equity Balances as of 3/31/19(2) (In Thousands) As Adjusted $1,200 $1,061 3/31/2019 3/31/2019 Debt: $800 Expansion Capital Borrowings $ 275,000 $ 165,000 $607 Working Capital Borrowings 896,000 896,000
Slide 26: 4th Quarter Update
4th Quarter Update Segment Summary Quarterly Summary Performance ($’s In Millions) Crude Oil Logistics outperformed expectations primarily due to strong results from Grand Mar-19 Mar-18 % Variance Mesa as the pipeline continues to benefit from increased production out of the DJ Basin Total Volume
Slide 27: 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 28: Appendix
Appendix 28
Slide 29: NGL Organizational Chart
NGL Organizational Chart Members 100% 125,966,868 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 30: 4Q'19 Adjusted EBITDA & DCF Walk
4Q’19 Adjusted EBITDA & DCF Walk Three Months Ended March 31, Year Ended March 31, 2019 2018 2019 2018 (in thousands) (in thousands) Net income (loss) $ 43,217 $ 110,912 $ 339,395 $ (69,605) Less: Net loss (income) attributable to noncontrolling interests 19,036 (19) 20,206 (240) Less: Net (income)
Slide 31: 4Q'19 & 4Q'18 Adjusted EBITDA by Segment
4Q’19 & 4Q’18 Adjusted EBITDA by Segment Three Months Ended March 31, 2019 Refined Products Corporate Discontinued Crude Oil Logistics Water Solutions Liquids and Renewables and Other Operations Consolidated (in thousands) Operating income (loss) $ 29,315 $ 113,049 $ (37,823) $ (5,736) $ (16,530) $
Slide 32: 4Q'19 YTD & 4Q'18 YTD Adjusted EBITDA by Segment
4Q’19 YTD & 4Q’18 YTD Adjusted EBITDA by Segment Year Ended March 31, 2019 Refined Products Corporate Discontinued Crude Oil Logistics Water Solutions Liquids and Renewables and Other Operations Consolidated (in thousands) Operating (loss) income $ (7,379) $ 210,525 $ (2,910) $ 27,459 $ (85,706) $ -
NGL Energy Partners — Investor Presentation (June 2019) on 6ix