NGL Energy Partners LP · NYSE:NGL

NGL Energy Partners LP — Investor Presentation (February 2017)

34 slides from NGL Energy Partners LP's investor presentation, February 2017

  1. Slide 1: Investor Deck February 2017

    Energy Partners LP Investor Deck February 2017

  2. 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) $ 24.95 federal securities laws. All statements, other than statements of historical fact, (1)(2) included in this presen

  3. Slide 3: NGL Energy Partners LP Overview

    NGL Energy Partners LP Overview 3

  4. 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

  5. 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

  6. Slide 6: Positioned for Growth with a Strong Balance Sheet

    Segment for Positioned Contribution growth with a strong balance sheet Business Update Balance Sheet Highlights  Market cap: $2.98bn ($24.95 per unit on 2/6/17 and $240mm in preferred equity) 1 2 3 4  Grand Mesa Operational 11/1/16 Reduce Capital Strengthen Lower Cost Enhanced  Sawtooth expansion

  7. Slide 7: Segment Contribution: 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

  8. Slide 8: Segment Contribution: 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

  9. Slide 9: NGL 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

  10. Slide 10: Operating Segments

    Operating Segments Nd Energy Pariners LP

  11. Slide 11: Segment Contribution: Crude Oil Logistics

    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

  12. Slide 12: Segment Contribution: Crude Oil Logistics

    Segment Crude OilContribution Logistics Adjusted EBITDA (In Millions) Crude BBL’s/Day (In Thousands) $150 400 $100 300 $73 230 217 (1) $65-75 184 $61 200 $50 126 $28 100 $- 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

  13. Slide 13: Segment Contribution: Water Solutions

    Segment Water Solutions Contribution Overview Area of Operation  Provides services for the treatment, processing, and disposal of Rig Count Summary(1) wastewater, and solids generated from oil and natural gas production Increase in Rigs NGL Rig Since Service  Revenue streams from the disposal of w

  14. Slide 14: Segment Contribution: Water Solutions

    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 $71 $65-70 300 207 $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 b

  15. Slide 15: Segment Contribution: Liquids

    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  Large provider of butane to ref

  16. Slide 16: Segment Contribution: Liquids

    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 $87 $93 $85-90 2,306 $100 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

  17. Slide 17: Segment Contribution: Retail Propane

    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 (1)  Geographic diversity mitigates weather risk  No c

  18. Slide 18: Segment Contribution: Retail Propane

    Segment Retail Propane Contribution Adjusted EBITDA (In Millions) Propane & Distillate GAL’s/Day (In Thousands) $150 500 464 470 $1.50 445 416 $105 400 $1.08 $97 $0.96 $0.98 $91 $0.93 $100 $1.00 $79 300 $0.59 $0.53 $0.54 $0.51 200 $50 $0.50 96 96 84 103 100 $- 0 $- FY 2014 FY 2015 FY 2016 FY 2017E F

  19. Slide 19: Segment Contribution: Refined Products/Renewables

    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

  20. Slide 20: Segment Contribution: Refined Products/Renewables

    SegmentProducts/Renewables Refined Contribution Adjusted EBITDA (In Millions) Refined Products/Renewables BBL’s/Day (In Thousands) $175 $160 300 (1) 270 265 $134 $140 200 186 $105 $79 $70 100 $35 27 $8 10 15 16 16 $- 0 FY 2014 FY 2015 FY 2016 FY 2017E FY 2014 FY 2015 FY 2016 FY 2017E Refined Product

  21. Slide 21: Financial Overview

    Financial Overview Nd Energy Pariners LP

  22. 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

  23. Slide 23: NGL Finance Goals and Achievements

    NGL Finance Goals and Achievements 1) Reduce Committed Capital Expenditure Requirements 2) Strengthen Balance Sheet 3) Lower Current Cost of Capital Including Lower Debt and Common Unit Yields 4) Enhance Liquidity  Retired ~$100 million of NGL debt at ~60% of par  Sale of the TLP GP to  Temporary

  24. Slide 24: Performance Metrics

    Performance Metrics (1) Adjusted EBITDA (In Millions) Acquisition, Growth and Maintenance Capex (In Millions) $1,269 $485 $443 $424 $961 $271 $600 $491 $184 $310 $133 $160 $138 $165 $59$14 $32 $35 $30 $35 $24 FY 2013 FY 2014 FY 2015 FY2016 FY 2017E IPO FY 2013 FY 2014 FY 2015 FY2016 FY 2017E Acquisi

  25. Slide 25: Fiscal Year 2018 Cash Flow Stability

    Cash FiscalFlow YearStability 2018 Fee-based EBITDA NGL Energy Partners LP Fee-Based Commodity 26% 74% Crude Logistics Water Solutions Liquids Retail Propane Refined Products / 0% Renewables 10% 27% 35% 51% 49% 65% 73% 100% 90% Fee-Based Commodity Fee-Based Commodity Fee-Based Commodity Fee-Based Co

  26. Slide 26: Credit Profile

    Credit Profile Debt Maturities and Balances Pro-Forma (In Millions) Balance Sheet Summary (In Thousands) $1,500 $1,514 12/31/2016 3/31/2016 Change Cash and Equivalents $ 28,927 $ 28,176 $ 751 $1,000 Other Current Assets 1,533,776 1,000,304 533,472 $700 Current Assets 1,562,703 1,028,480 534,223 $500

  27. Slide 27: Key Operational Assumptions and 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

  28. Slide 28: Appendix

    Appendix Nd Energy Pariners LP

  29. Slide 29: 3rd Quarter Update

    3rd Quarter Update  Segment Summary Quarterly Summary Performance ($’s In Millions) – Refined Products/Renewables continues to outperform expectations driven 3Q '17 3Q '16 % Variance by growth in motor fuels demand Total Volume (In Thousand's) – Crude Logistics was impacted by lower U.S. crude prod

  30. Slide 30: NGL Organizational Chart

    NGL Organizational Chart Members 100% NGL Energy Holdings LLC 110,059,407 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

  31. Slide 31: 3Q'17 Adjusted EBITDA Walk

    3Q’17 Adjusted EBITDA Walk As Restated(1) As Restated(1) Three Months Ended December 31, Nine Months Ended December 31, 2016 2015 2016 2015 (in thousands) (in thousands) Net income $ 1,293 $ 50,995 $ 117,388 $ 19,888 Less: Net income attributable to noncontrolling interests (317) (6,838) (6,091) (14

  32. Slide 32: 3Q'17 & 3Q'16 Adjusted EBITDA by Segment

    3Q’17 & 3Q’16 Adjusted EBITDA by Segment Three Months Ended December 31, 2016 Refined Products Crude Oil Water Retail and Corporate Logistics Solutions Liquids Propane Renewables and Other Consolidated (in thousands) Operating income (loss) $ (9,163) $ (11,898) $ 24,765 $ 21,772 $ 8,209 $ (11,128) $

  33. Slide 33: 3Q'17 & 3Q'16 YTD Adjusted EBITDA by Segment

    3Q’17 & 3Q’16 YTD Adjusted EBITDA by Segment Nine Months Ended December 31, 2016 Refined Products Crude Oil Water Retail and Corporate Logistics Solutions Liquids Propane Renewables and Other Consolidated (in thousands) Operating income (loss) $ (28,827) $ 63,136 $ 33,092 $ 10,553 $ 169,365 $ (66,69

  34. Slide 34: FY'16 Adjusted EBITDA by Segment

    FY’16 Adjusted EBITDA by Segment (1) Year Ended March 31, 2016 Refined Products Crude Oil Water Retail and Corporate Logistics Solutions Liquids Propane Renewables and Other Consolidated (in thousands) Operating income (loss) $ (40,745) $ (313,673) $ 76,173 $ 44,096 $ 226,951 $ (97,405) $ (104,603)

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