NGL Energy Partners LP · NYSE:NGL
NGL Energy Partners LP — Merger or Acquisition (November 2013)
14 slides from NGL Energy Partners LP's merger presentation, November 2013
Slide 1: Overview of Gavilon Acquisition
Overview of Gavilon Acquisition
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes “forward looking statements” within the meaning of federal securities laws. All statements, other than statements of historical fact, included in this presentation are forward looking statements, including statements regarding the Partnership’s f
Slide 3: Senior Management Representatives
Senior Management Representatives H. Michael Krimbill Chief Executive Officer – NGL James J. Burke Chief Executive Officer – High Sierra David C. Kehoe Chief Operating Officer Atanas H. Atanasov Chief Financial Officer 3
Slide 4: Overview of Gavilon Acquisition
Overview of Gavilon Acquisition NGL has agreed to acquire Gavilon, LLC ("Gavilon"), the diversified midstream energy business owned by funds managed by Ospraie Management, General Atlantic and Soros Fund Management Gavilon is principally comprised of crude oil storage, terminal and pipeline asse
Slide 5: Acquisition is a Continuation of NGL's Rapid and Successful Growth
Acquisition is a Continuation of NGL's Rapid and Successful Growth NGL has delivered a total return of 68% since IPO Since NGL's IPO in May 2011, NGL has consumated and integrated 26 acquisitions totaling ~$2 billion (~$2.9 billion including Gavilon) The acquisition of Gavilon is transformative
Slide 6: Gavilon Transaction Merits
Gavilon Transaction Merits Exceptional crude oil platform with integrated storage, terminal and pipeline assets Integrated Platform Complementary supply, marketing and logistics ("SM&L") businesses in crude oil and refined products with Attractive Growth Platform provides NGL with an attractiv
Slide 7: Gavilon Adds Scale, Diversity and Hard Assets
Gavilon Adds Scale, Diversity and Hard Assets Crude Oil Platform—Hard Assets Illustrative Asset Contribution 50% interest in Glass Mountain Pipeline ("GMP") – 210-mile pipeline with ~147 MMbbls/d capacity Crude – Pipeline has expansion capacity to 175 MMbbls/d Pipelines, – 440 MMbbls of intermedia
Slide 8: Integrated, Customer-Focused Midstream Platform
Integrated, Customer-Focused Midstream Platform Glass Mountain 8.1 Bcf and 25 MMcf/d Pipeline leased storage and transportation capacity Gavilon Customers Natural Gas Natural Gas Pipeline Pipeline Pipeline Transportation Transportation Gavilon Electricity Generation Natural Gas Customers Processing
Slide 9: Strategically Located and Complementary Operations
Strategically Located and Complementary Operations Gavilon's assets are located in key U.S. transportation and marketing centers Legend Truck Terminal 4 Seadrift Terminal Truck/Marine Terminal Used by Gavilon for loading Texas crude oil supply and Storage Hub and Terminal transporting to higher va
Slide 10: Cushing Terminal and Glass Mountain Pipeline
Cushing Terminal and Glass Mountain Pipeline Cushing Terminal Overview Cushing Terminal Connection Matrix 7.99 MMbbls of storage capacity(1) 8-bay Truck 200 acres with expansion capability of 3.0 MMbls Terminal of additional storage Transformation from storage terminal into high throughput gat
Slide 11: Crude Oil Supply Marketing & Logistics
Crude Oil Supply Marketing & Logistics SM&L gross margin growth will be primarily driven by growth in blending and transport; marketing expected to remain flat Marketing and Supply Gathering and Transportation Fully integrated marketing and supply Pick up, transport and deliver crude oil solutio
Slide 12: Fuels
Fuels Overview Gavilon's Distribution Terminals Marketing and supply of gasoline and Refined diesel (94 Mbbls/d moved) Products – Access to over 230 fuels distribution terminals Marketing and supply of ethanol and biodiesel (9 Mbbls/d moved) – Includes blending of ethanol and Renewables biodiese
Slide 13: Purchase Price is Fully Funded
Purchase Price is Fully Funded Acquisition is fully funded through credit facility borrowings and a private placement of common units Pro forma credit profile remains within NGL's target leverage range No additional equity is required to finance this acquisition Acquisition bolsters NGL's di
Slide 14: Key Takeaways
Key Takeaways The Gavilon transaction is a transformative acquisition that results in immediate accretion at an attractive multiple Gavilon provides NGL an exceptional crude oil platform with integrated storage and pipeline assets, and complementary supply, marketing and logistics businesses in
NGL Energy Partners — Merger or Acquisition (November 2013) on 6ix