NGL Energy Partners LP · NYSE:NGL
NGL Energy Partners LP — UBS Conference January 2017
34 slides from NGL Energy Partners LP's conference presentation, January 2017
Slide 1: UBS Conference January 2017
Energy Partners LP UBS Conference January 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) $ 21.15 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 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: Positioned for growth with a well-capitalized balance sheet
Segment for Positioned Contribution growth with a well-capitalized balance sheet Business Update Balance Sheet Highlights Market cap: $2.51bn ($21.15 per unit on 1/3/17 and $240mm in preferred equity) 1 2 3 4 FY 2017E compliance leverage: 3.8x – 3.9x – FY 2017E EBITDA guidance: $485-500mm (only
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
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
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 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
Slide 12: Crude Oil Logistics Adjusted EBITDA and Volumes
Segment Crude OilContribution Logistics Adjusted EBITDA (In Millions) Crude BBL’s/Day (In Thousands) $150 400 $100 $90-100 300 $73 230 217 (1) $61 184 200 $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 approximatel
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
Slide 14: Water Solutions Adjusted EBITDA and Volumes
Segment Water Solutions Contribution Adjusted EBITDA (In Millions) Water Disposal BBL’s/Day (In Thousands) $150 570 585 $126 600 500 443 $100 $75 400 $68 $71 300 207 $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 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
Slide 16: Liquids Adjusted EBITDA and Volumes
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 $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's
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
Slide 18: Retail Propane Adjusted EBITDA and Volumes
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
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
Slide 20: Refined Products/Renewables Adjusted EBITDA and Volumes
SegmentProducts/Renewables Refined Contribution Adjusted EBITDA (In Millions) Refined Products/Renewables BBL’s/Day (In Thousands) $150 $150 300 (1) $134 270 265 $100 200 186 $79 $50 100 $8 27 15 16 16 10 $- 0 FY 2014 FY 2015 FY 2016 FY 2017E FY 2014 FY 2015 FY 2016 FY 2017E Refined Products Renewab
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: 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 Proposed
Slide 24: Performance Metrics
Performance Metrics (1) Adjusted EBITDA (In Millions) Acquisition, Growth and Maintenance Capex (In Millions) $1,269 $485-500 $443 $424 $961 $271 $600 $491 $184 $299 $133 $160 $138 $114 $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 Acq
Slide 25: Credit Profile
Credit Profile Debt Maturities and Balances Pro-Forma (In Millions) Balance Sheet Summary (In Thousands) $1,500 $1,335 9/30/2016 3/31/2016 Change Cash and Equivalents $ 23,427 $ 28,176 $ (4,749) $1,000 Other Current Assets 1,226,872 1,000,304 226,568 $700 Current Assets 1,250,299 1,028,480 221,819 $
Slide 26: 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
Slide 27: Appendix
Appendix Nd Energy Pariners LP
Slide 28: 2nd Quarter Update
2nd Quarter Update Segment Summary Quarterly Summary Performance ($’s In Millions ) – Refined Products/Renewables continues to outperform expectations driven 2Q '17 2Q '16 % Variance by growth in motor fuels demand Total Volume (In Thousand's) – Crude Logistics was impacted by lower U.S. crude pro
Slide 29: NGL Revolving Credit Commitments
NGL Revolving Credit Commitments Working Capital Acquisition Total Lender Commitment (1) Commitment (1) Commitment Deutsche Bank AG $ 84,636,602 $ 117,863,398 $ 202,500,000 8.15% Royal Bank of Canada 84,636,602 117,863,398 202,500,000 8.15% BNP Paribas 68,963,157 96,036,843 165,000,000 6.64% Toronto
Slide 30: NGL Organizational Chart
NGL Organizational Chart Members 100% NGL Energy Holdings LLC 107,454,272 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 31: 2Q'17 Adjusted EBITDA Walk
2Q’17 Adjusted EBITDA Walk As Restated (1) As Restated (1) Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 (in thousands) (in thousands) Net (loss) income $ (66,658) $ (6,100) $ 116,095 $ (31,107) Less: Net loss (income) attributable to noncontrolling interests 59
Slide 32: 2Q'17 & 2Q'16 Adjusted EBITDA by Segment
2Q’17 & 2Q’16 Adjusted EBITDA by Segment Three Months Ended September 30, 2016 Refined Products Crude Oil Water Retail and Corporate Logistics Solutions Liquids Propane Renewables and Other Consolidated (in thousands) Operating income (loss) $ (19,039) $ (4,430) $ 8,384 $ (8,717) $ 11,387 $ (23,413)
Slide 33: 2Q'17 & 2Q'16 YTD Adjusted EBITDA by Segment
2Q’17 & 2Q’16 YTD Adjusted EBITDA by Segment Six Months Ended September 30, 2016 Refined Products Crude Oil Water Retail and Corporate Logistics Solutions Liquids Propane Renewables and Other Consolidated (in thousands) Operating income (loss) $ (19,664) $ 75,034 $ 8,327 $ (11,219) $ 161,156 $ (55,5
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)