NGL Energy Partners LP · NYSE:NGL
NGL Energy Partners LP — Investor Presentation (February 2020)
27 slides from NGL Energy Partners LP's investor presentation, February 2020
Slide 1: NGL Energy Partners LP Investor Presentation February 2020
NGL Energy Partners LP Investor Presentation February 2020
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) $9.43 included in this presentation are
Slide 3: Business Overview
Business Overview ▪ Provides services for the transportation, treatment, processing, and disposal of produced water and solids generated from oil and natural gas production ▪ Water recycling expertise, history of cleaning produced water to drinking quality for 10 years Water Solutions ▪ Revenue stre
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 Higher Lower Commodity Commodity
Slide 5: Business Strategy
Business Strategy ▪ Transport crude oil from the wellhead to refiners Build a Diversified ▪ Transport produced water from the wellhead to disposal facility for treatment, recycle or discharge Vertically Integrated Energy Business ▪ Natural Gas Liquids from fractionators / hubs to refineries and end
Slide 6: Balance Sheet Management Review NGL's Transformation
Balance Sheet Management Review NGL’s Transformation Segments & Assets as of December 31, 2016 - 5 Diversified Business Units 1) Refined Products/Renewables (38%) 2) Liquids (20%) 3) Retail Propane (19%) 4) Water Solutions (13%) 5) Crude Logistics (11%) 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 produced water 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
Slide 9: Delaware Basin
Delaware Basin SWD ▪ NGL has 62 active Salt Water Disposal Facilities & Facilities 119 active Disposal Wells & ➢ 32 Facilities in Texas and 30 in New Mexico Disposal ▪ NGL has 1 Solids Disposal Facility in-service at its Wells Orla location Water ▪ ~450 miles of water pipeline projects in-service Pi
Slide 10: 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 MVC Volumes 332 Mbpd % Volumes via Pipeline(2) > 80% Disposal Facilities / 62 Disposal Facilities / NGL’s Cleveland facility # of Wells(2) 119 Wells Operating Capa
Slide 11: Water Solutions Financial Overview
Water Solutions Financial Overview Segment Adjusted EBITDA FY 2020 Forecast Assumptions $300 ▪ Primary growth focused in the Delaware Basin (New Mexico) $240 - $250 ▪ Blended disposal rate of ~$0.60/bbl and operating expense of $250 ~$0.40/bbl for each disposal volume, inclusive of Mesquite and Hill
Slide 12: 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 13: 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 14: Crude Oil Logistics Financial Overview
Crude Oil Logistics Financial Overview Segment Adjusted EBITDA FY 2020 Forecast Assumptions $250 ▪ Grand Mesa Pipeline $215 - $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
Slide 15: 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 16: Liquids and Marketing Financial Overview
Liquids and Marketing Financial Overview Segment Adjusted EBITDA FY 2020 Forecast Assumptions $160 ▪ Propane/Butane Wholesale $140 $134 – Assumes a normal winter for volume and pricing $125 $115 - 120 – Fee-based business makes up 10%-15% of gross margin $120 $101 $93 ▪ NGL Terminals/Sawtooth $100 $
Slide 17: Financial Overview
Financial Overview 17
Slide 18: Financial Objectives
Financial Objectives ▪ The Partnership has made significant strides in reducing total debt and will look to maintain a flexible balance sheet with a leverage Strong Balance target of less than 4.00x on a total leverage basis Sheet ▪ Goal of achieving investment grade rating ▪ Increasing fee-based bu
Slide 19: Performance Metrics
Performance Metrics (2) Adjusted EBITDA (In Millions) Acquisition, Growth and Maintenance Capex (In Millions) (1) $565 - 595 ~$1,500 $443 $424 $440 $408 $1,269 $381 $961 $271 $600 $419 $450 - $475 $334 $349 $133 $160 $138 $164 $162 $32 $35 $30 $26 $50 $38 $49 $50- $60 FY 2014 FY 2015 FY 2016 FY 2017
Slide 20: Credit Profile
Credit Profile (2) Debt Maturities as of 12/31/19 (In Millions) Debt & Preferred Equity Balances as of 12/31/19 $1,600 $1,392 (In Thousands) $1,200 12/31/2019 9/30/2019 $800 Debt $607 $389 $450 Expansion Capital Borrowings $ 945,000 $ 450,000 $400 $250 Working Capital Borrowings 447,000 643,000 $- S
Slide 21: 3rd Quarter Update
3rd Quarter Update Segment Summary Quarterly Summary Performance ($’s In Millions) ▪ Crude Oil Logistics performed in line with expectations primarily due to strong results Dec-19 Dec-18 Variance(%) from Grand Mesa as the pipeline continues to benefit from increased production out Total Volume (In T
Slide 22: 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 23: Appendix
Appendix 23
Slide 24: NGL Organizational Chart
NGL Organizational Chart Members 100% 128,348,906 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 25: 3Q'20 Adjusted EBITDA & DCF Walk
3Q’20 Adjusted EBITDA & DCF Walk Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 (in thousands) (in thousands) Net income (loss) $ 42,991 $ 110,528 $ (150,336) $ 296,178 Less: Net loss attributable to noncontrolling interests 166 307 563 1,170 Less: Net loss attrib
Slide 26: 3Q'20 & 3Q'19 Adjusted EBITDA by Segment
3Q’20 & 3Q’19 Adjusted EBITDA by Segment Three Months Ended December 31, 2019 Discontinued Operations (TPSL, Refined Products Corporate and Continuing Mid-Con, Gas Crude Oil Logistics Water Solutions Liquids and Renewables Other Operations Blending) Consolidated (in thousands) Operating income (loss
Slide 27: 3Q'20 YTD & 3Q'19 YTD Adjusted EBITDA by Segment
3Q’20 YTD & 3Q’19 YTD Adjusted EBITDA by Segment Nine Months Ended December 31, 2019 Discontinued Operations (TPSL, Refined Products Corporate and Continuing Mid-Con, Gas Crude Oil Logistics Water Solutions Liquids and Renewables Other Operations Blending) Consolidated (in thousands) Operating incom
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