NGL Energy Partners LP · NYSE:NGL
NGL Energy Partners LP — MLPA Conference 2017
32 slides from NGL Energy Partners LP's conference presentation, Jun 2, 2017
Slide 1: MLPA Conference May 31 - June 2, 2017
MLPA Conference May 31 - June 2, 2017
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 Unit Price (1) $ 14.15 federal securities laws. All statements, other than statements of historical fact, (1)(2) included in this presen
Slide 3: NGL Energy Partners LP Overview
NGL Energy Partners LP Overview 3
Slide 4: Business Diversity
Business Diversity NGL Energy Partners LP Crude Logistics Crude Oil Volumes and Primary Drivers: + — Storage —-4t-—— | BenefitsFrom: = — > Higher Prices | -TA- — a FY18 Forecasted I | EBITDA —-—-— >| 20-25% | Contribution %: | Water Solutions Water Volumes, | RigCount,and Skim Oil [ Butane Blending,
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: Segment Overview
SegmentOverview Business Contribution Business Overview NGL business model has evolved into a vertically integrated business mix that serves as a natural hedge, mitigating the impact of commodity price volatility across all segments Size and quality of cash flows have transitioned NGL into a mor
Slide 7: Segment: Grand Mesa Pipeline
Segment Grand Mesa Contribution Pipeline Grand Mesa Pipeline delivers crude oil from the DJ Basin to DJ Cushing, OK with origin points located in Weld County at Basin Lucerne and Riverside, Colorado Platteville to Cushing pipeline segment is a 20-inch undivided joint interest pipeline with Saddl
Slide 8: STACK Extension / Murphy Energy Asset Purchase
Segment STACK Extension Contribution / Murphy Energy Asset Purchase Glass Mountain Pipeline is a joint venture owned equally with SemGroup Corporation. The current pipeline is 215 miles long and delivers crude oil from the Mississippi Lime and Granite Wash plays to Cushing, Oklahoma. Alva ─ Glass
Slide 9: NGL Operational Business Strategy
NGL Operational Business Assumptions Strategy Transport crude oil from the wellhead 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 Liqui
Slide 10: Operating Segments
Operating Segments Nd Energy Pariners LP
Slide 11: Segment: Crude Oil Logistics
Segment Crude OilContribution Logistics Overview Crude WTI Spot Price Purchases and transports crude oil for resale to a pipeline injection $120 point, storage terminal, barge loading facility, rail facility, refinery or trade hub Provides transportation, terminaling, and storage of crude oil an
Slide 12: Crude Oil Logistics Asset Summary
Segment Crude OilContribution Logistics Asset Summary Adjusted EBITDA (In Millions) Crude Oil Pipelines – 100% interest in Grand Mesa Pipeline; 150MBPD capacity $150 – 50% interest in Glass Mountain Pipeline; ~147MBPD capacity $130 – Ship on 16 common carrier pipelines Crude Oil Storage $100 $73
Slide 13: Segment: Water Solutions
Segment Water Solutions Contribution Overview U.S Oil Rig Count(1) Provides services for the treatment, processing, and disposal of 600 wastewater, and solids generated from oil and natural gas production Revenue streams from the disposal of wastewater and solids, 500 transportation of water thr
Slide 14: Water Solutions Asset Summary
Segment Water Solutions Contribution Asset Summary Adjusted EBITDA (In Millions) 72 water treatment and disposal facilities, including 94 wells across the Permian (35), Eagle Ford (31), DJ (21), Bakken (3), Granite Wash (3) and Pinedale Anticline (1) basins $150 $126 Combined total of ~1.7 milli
Slide 15: Segment: Liquids
Segment Contribution Liquids Overview Heating Degree Days 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 Large provider of butane to r
Slide 16: Liquids Asset Summary
Segment Contribution Liquids Asset Summary Adjusted EBITDA (In Millions) 21 terminals serving over 400 customers 11 terminals with rail unloading capability, 5 multi-product terminals, 9 pipe-connected terminals $150 $93 $101 $90 Approximately 3.8 million barrels of leased underground storage,
Slide 17: Segment: Retail Propane
Segment Retail Propane Contribution Overview Sample of Trade Names Sells propane and distillates to end-users consisting of residential, agricultural, commercial and industrial customers 6th Largest Retail Propane business in the United States (1) Geographic diversity mitigates weather risk
Slide 18: Retail Propane Asset Summary
Segment Retail Propane Contribution Asset Summary Adjusted EBITDA (In Millions) Own or lease 128 customer service locations Own or lease 119 satellite distribution locations $150 Aggregate propane storage capacity of 17.5 million gallons $97 $100 Aggregate distillate storage capacity of 5.6
Slide 19: Segment: Refined Products/Renewables
SegmentProducts/Renewables Refined Contribution Overview DOE Total U.S. Gas Supplied(1) Purchase refined petroleum products primarily in the Gulf Coast, Southeast, 10,000 and Midwest regions of the United States and schedule them for delivery primarily on the Colonial, Plantation, Magellan and NuS
Slide 20: Refined Products/Renewables Asset Summary
SegmentProducts/Renewables Refined Contribution Asset Summary Adjusted EBITDA (In Millions) Allocated Line Space on the Colonial and Plantation pipelines Sales from approximately 200 terminals over 37 states $150 $134 $130 $125 Approx. 9.0 million barrels of storage capacity Rack sales throu
Slide 21: Financial Overview
Financial Overview Nd Energy Pariners LP
Slide 22: Financial Objectives
Financial Objectives The Partnership has made significant strides and will continue to Strong Balance pursue a flexible balance sheet with a leverage target of less than Sheet 3.25x on a compliance basis Goal of achieving investment grade rating Increasing fee-based business and long-term cont
Slide 23: 4th Quarter Update
4th Quarter Update Segment Summary Quarterly Summary Performance ($’s In Millions) – Refined Products/Renewables was impacted primarily by line space values 4Q '17 4Q '16 % Variance combined with a fall-off in biodiesel values and margins Total Volume (In Thousand's) Refined Products/Renewables –
Slide 24: Performance Metrics
Performance Metrics (1) Adjusted EBITDA (In Millions) Acquisition, Growth and Maintenance Capex (In Millions) $1,269 $961 $500-525 $443 $424 $600 $381 $491 $271 $334 $184 $160 $138 $164 $150-200 $133 $59$14 $32 $35 $30 $26 $30 $- $24 FY 2013 FY 2014 FY 2015 FY2016 FY 2017 FY 2018E IPO FY 2013 FY 201
Slide 25: Credit Profile
Credit Profile 3/31/17 Debt Maturities and Balances Pro-Forma (In Millions) Balance Sheet Summary (In Thousands) 3/31/2017 3/31/2016 Change Cash and Equivalents $ 12,264 $ 28,176 $ (15,912) This $1,000 is Other Current Assets 1,471,943 1,000,304 471,639 $815 tied $750 out $700 Current Assets 1,484,2
Slide 26: Key Operational Assumptions: Investment Highlights
NGL KeyOperational Assumptions 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 growing Attractive Asset Ba
Slide 27: Appendix
Appendix Nd Energy Pariners LP
Slide 28: NGL Organizational Chart
NGL Organizational Chart Members 100% NGL Energy Holdings LLC 120,179,407 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: 4Q'17 Adjusted EBITDA Walk
4Q’17 Adjusted EBITDA Walk (1) As Restated(1) As Restated Three Months Ended March 31, Year Ended March 31, 2017 2016 2017 2016 (in thousands) (in thousands) Net income (loss) 26,486 (206,985) 143,874 (187,097) Less: Net income attributable to noncontrolling interests (741) 2,853 (6,832) (11,832) Ne
Slide 30: 4Q'17 & 4Q'16 Adjusted EBITDA by Segment
4Q’17 & 4Q’16 Adjusted EBITDA by Segment Three Months Ended March 31, 2017 Refined Products Crude Oil Water Retail and Corporate Logistics Solutions Liquids Propane Renewables and Other Consolidated (in thousands) Operating income (loss) $ (7,327) $ (18,549) $ 10,160 $ 38,702 $ 53,181 $ (14,792) $ 6
Slide 31: YTD FY17 & YTD FY16 Adjusted EBITDA by Segment
YTD FY17 & YTD FY16 Adjusted EBITDA by Segment Year Ended March 31, 2017 Refined Products Crude Oil Water Retail and Corporate Logistics Solutions Liquids Propane Renewables and Other Consolidated (in thousands) Operating income (loss) $ (36,154) $ 44,587 $ 43,252 $ 49,255 $ 222,546 $ (81,482) $ 242
Slide 32: FY'17 Adjusted EBITDA by Segment
FY’17 Adjusted EBITDA by Segment Year Ended March 31, 2017 Refined Products Crude Oil Water Retail and Corporate Logistics Solutions Liquids Propane Renewables and Other Consolidated (in thousands) Operating income (loss) $ (36,154) $ 44,587 $ 43,252 $ 49,255 $ 222,546 $ (81,482) $ 242,004 Depreciat