Ngl Energy Partners Lp · NYSE:NGL
Ngl Energy Partners Lp — Investor Presentation (November 2021)
25 slides from Ngl Energy Partners Lp's investor presentation, November 2021
Slide 1: Investor Presentation
Investor Presentation November 2021
Slide 2: Company Overview
Company Overview Water Solutions Crude Oil Logistics Liquids Logistics ▪ Supplier of NGL’s, refined products and biodiesel to ▪ Provides water transportation, treating, ▪ Purchases crude oil from producers and a broad range of end-users across the United States recycling and handling services for up
Slide 3: Business Focus
Business Focus Financial Focus Operational Focus ▪ Prudent management of our balance sheet with a primary focus Water Solutions on reducing absolute debt and leverage, while improving credit ▪ Leverage our water processing facilities and metrics and ratings pipelines, which are strategically located
Slide 4: Operational and Financial Highlights
Operational and Financial Highlights Corporate Adj. EBITDA by Segment Q2 FY22 - YTD repurchased ~$42MM senior unsecured notes at discount (Excludes Corporate & Other) - Expect full year growth and maintenance capital ~$115MM 12% - Published our inaugural Sustainability Report, June 2021 Water Soluti
Slide 5: Our Environmental and Sustainability Focus
Our Environmental and Sustainability Focus We recently published our 2020 Sustainability Report and are proud to share many of the activities we are undertaking demonstrate our commitment to sustainability. ▪ We believe in operating all our businesses in a safe and environmentally responsible “I’d l
Slide 6: Segment Overview
Segment Overview Pg 6
Slide 7: Water Solutions Segment: What SWD Means to NGL
WATER SOLUTIONS SEGMENT Sustainable Water Development: What SWD ▪ NGL is a leader in providing wastewater for reuse in the Delaware Basin means to ▪ NGL provided 14.1 million barrels of wastewater for reuse in calendar year 2020, a 336% increase from calendar year 2019 NGL… Scientific Water Discover
Slide 8: Water Solutions Overview
Water Solutions Overview Water Pipelines Water Handling & Recycling New Mexico Ranches ▪ Owned water pipelines and 3rd party ▪ 114 water handling facilities, 215 injection ▪ Significant surface acreage ownership connections to NGL facilities wells ▪ ~200,000 acres including fee, state and federal ▪
Slide 9: Water Solutions Delaware Basin Overview
Water Solutions Delaware Basin Overview System built for significant ▪ 122 Water Injection Wells volume with majority of - 94 Wells in Texas and 28 in New Mexico pipelines having 16'' – 30'' diameters ▪ 1 Solids Handling Facility at Orla location ▪ NGL has capabilities for both recycle and frac- Pre
Slide 10: Water Solutions Key Metrics
Water Solutions Key Metrics Produced Water Processed Produced Water Margin/BBL(1) Water Solutions Adjusted (KBPD) $0.40 EBITDA $0.33 $0.34 2,000 $400 1,643 1,714 $350 $0.30 1,500 1,365 $0.23 $300 $232 $242 947 $0.20 $0.17 $0.17 1,000 $200 $166 707 $116 500 $0.10 $100 0 $- $- FY 2018 FY 2019 FY 2020
Slide 11: Crude Oil Logistics Segment
CRUDE OIL LOGISTICS SEGMENT Our Crude Oil Logistics segment purchases crude oil from producers and marketers and • ~550 mile 20” crude oil pipeline • Operations are concentrated in from the DJ Basin to Cushing, and around four prolific crude oil transports it to refineries for resale at pipeline OK
Slide 12: Crude Oil Logistics Key Metrics
Crude Oil Logistics Key Metrics Crude Oil Volumes (KBPD) Crude Oil Margin/BBL1 Crude Oil Logistics Adjusted 150 EBITDA 133 $5.00 $4.57 126 $300 117 117 109 105 $4.00 102 $219 100 92 90 79 $3.00 $2.64 $200 $181 $145 $140 $2.00 $118 $1.48 50 $100 $0.84 $1.00 $0.59 0 $- $- FY 2018 FY 2019 FY 2020 FY 20
Slide 13: Liquids Logistics Segment
LIQUIDS LOGISTICS SEGMENT • Fleet of ~4,500 leased railcars • 26 owned terminals connected • 23 transloading units by pipelines Our Liquids Logistics segment purchases • Diverse customer base with • Chesapeake Terminal is one of propane, butane, gasoline, diesel, and other long-term relationships 3
Slide 14: Liquids Logistics Key Metrics
Liquids Logistics Key Metrics Margin by Product Liquids Logistics Adjusted EBITDA $0.15 $200 $182 $150 $0.10 $113 $102 $102 $100 $73 $0.05 $50 $- $- FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 YTD FY 2018 FY 2019 FY 2020 FY 2021 FY 2022E Propane Butane Refined Products Other Products Adjusted EBITDA (in
Slide 15: Leverage Below 4.75x
Drivers to Deleveraging Leverage Below 4.75x Free Cash Flow Generation Operational Execution Reduce Absolute Debt & Leverage Reduce Capital Expenditures Reduce Working Capital Requirements Asset Sales Pg 15
Slide 16: Appendix
Appendix Pg 16
Slide 17: Performance & Credit Metrics
Performance & Credit Metrics (1) $589 $570-$600 Total Debt(1) (in thousands) $448 Total Debt 9/30/2021 6/30/2021 $419 $’s in millions Credit Facility $ 146,000 $ 77,000 $272 Secured Notes due 2026 2,050,000 2,050,000 7.500% Senior Notes due 2023 519,496 536,584 6.125% Senior Notes due 2025 380,020 3
Slide 18: 2Q'22 & 2Q'21 Adjusted EBITDA & DCF Walk
2Q’22 & 2Q’21 Adjusted EBITDA & DCF Walk Three Months Ended September 30, Six Months Ended September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Net (loss) income $ (1,207) $ 5,835 $ (135,709) $ (29,417) Less: Net income attributable to noncontrolling interests (330) (168) (768) (219) Net
Slide 19: 2Q'22 & 2Q'21 Adjusted EBITDA by Segment
2Q’22 & 2Q’21 Adjusted EBITDA by Segment Three Months Ended September 30, 2021 Water Crude Oil Liquids Corporate Solutions Logistics Logistics and Other Consolidated (in thousands) Operating income (loss) $ 32,772 $ 28,231 $ 11,461 $ (7,646) $ 64,818 Depreciation and amortization 50,670 12,454 4,686
Slide 20: 2Q'22 YTD & 2Q'21 YTD Adjusted EBITDA by Segment
2Q’22 YTD & 2Q’21 YTD Adjusted EBITDA by Segment Six Months Ended September 30, 2021 Water Crude Oil Liquids Corporate Solutions Logistics Logistics and Other Consolidated (in thousands) Operating income (loss) $ 40,355 $ 16,650 $ (41,948) $ (19,573) $ (4,516) Depreciation and amortization 113,651 2
Slide 21: FY'21 Adjusted EBITDA by Segment
FY’21 Adjusted EBITDA by Segment Pg 21
Slide 22: FY'20 Adjusted EBITDA by Segment
FY’20 Adjusted EBITDA by Segment Pg 22
Slide 23: FY'19 Adjusted EBITDA by Segment
FY’19 Adjusted EBITDA by Segment Pg 23
Slide 24: FY'18 Adjusted EBITDA by Segment
FY’18 Adjusted EBITDA by Segment Pg 24
Slide 25: Company Information
Company Information NGL ENERGY PARTNERS LP FORWARD LOOKING STATEMENTS This presentation includes “forward looking statements” within the meaning of NYSE Ticker NGL federal securities laws. All statements, other than statements of historical fact, included in this presentation are forward looking sta
NGL Energy Partners — Investor Presentation (November 2021) on 6ix