NGL Energy Partners LP Announces Third Quarter Results and Filing of Form 10-Q

NGL Energy Partners LP (NYSE:NGL) today reported net income of $40.5 million and Adjusted EBITDA of $73.2 million for the three months ended December 31, 2012. Net income per limited partner common unit for the quarter was $0.75. General and administrative expenses during the quarter ended December 31, 2012 included $0.8 million of costs related to acquisitions.

NGL’s Chief Executive Officer, H. Michael Krimbill, said, “We are pleased to announce Adjusted EBITDA results exceeding prior guidance for the quarter. We completed a number of acquisitions during the quarter that further enhanced our ability to provide customers with a full range of services from wellhead to the end market. Going forward our focus will also include internal growth projects, many of which have been initiated in fiscal 2013 and will contribute to results in fiscal 2014.”

During the three months ended December 31, 2012, NGL completed several acquisitions, including:

• The November 2012 acquisition of certain entities that conduct crude oil purchasing and logistics operations in Texas and New Mexico;
• The December 2012 acquisition of a barge transportation business;
• The acquisition of two retail propane businesses; and
• The acquisition of three water services and crude oil logistics businesses.

For the nine months ended December 31, 2012, NGL reported net income of $25.8 million and Adjusted EBITDA of $93.1 million. Net income per limited partner common unit for the nine months ended December 31, 2012 was $0.53. General and administrative expenses during the nine months ended December 31, 2012 included $5.2 million of costs related to acquisitions.

On January 24, 2013, NGL announced that the Board of Directors of its general partner increased the quarterly cash distribution for the third fiscal quarter ended December 31, 2012, by $.0125 to $0.4625 per outstanding limited partner unit from $0.45 per unit, resulting in an annualized cash distribution of $1.85 per unit. This distribution was paid on February 14, 2013, to unitholders of record entitled to receive the distribution at the close of business on February 4, 2013. This is the fifth consecutive quarter NGL has increased its cash distribution since its initial public offering in May 2011.

NGL also announced that it has filed its quarterly report on Form 10-Q for its fiscal quarter ended December 31, 2012 with the Securities and Exchange Commission. NGL has posted a copy of the Form 10-Q on its website at www.nglenergypartners.com.

A conference call to discuss NGL's results of operations is scheduled for 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on February 15, 2013. Analysts, investors, and other interested parties may access the conference call by dialing (866) 788-0545 and providing access code 55364675. An audio replay of the conference call will be available for 7 days beginning at 12:00 p.m. Eastern Time on February 15, 2013 and can be accessed by dialing (888) 286-8010 and providing access code 86475629.

NGL defines EBITDA as net income (loss) attributable to parent equity, plus income taxes, interest expense and depreciation and amortization expense. NGL defines Adjusted EBITDA as EBITDA excluding the unrealized gain or loss on derivative contracts and the gain or loss on the disposal of assets and share-based compensation expenses. EBITDA and Adjusted EBITDA should not be considered an alternative to net income, income before income taxes, cash flows from operating activities, or any other measure of financial performance calculated in accordance with GAAP as those items are used to measure operating performance, liquidity or the ability to service debt obligations. NGL believes that EBITDA provides additional information for evaluating its ability to make quarterly distributions to its unitholders and is presented solely as a supplemental measure. NGL believes that Adjusted EBITDA provides additional information for evaluating its financial performance without regard to its financing methods, capital structure and historical cost basis. Further, EBITDA and Adjusted EBITDA, as NGL defines them, may not be comparable to EBITDA and Adjusted EBITDA or similarly titled measures used by other entities. A reconciliation of Adjusted EBITDA to net income (loss) attributable to parent equity is shown below.

This press release includes “forward-looking statements.” All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. While NGL believes its expectations as reflected in the forward-looking statements are reasonable, NGL can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings with the Securities and Exchange Commission. Other factors that could impact any forward-looking statements are those risks described in NGL’s annual report on Form 10-K, quarterly reports on Form 10-Q, and other public filings. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors”. NGL undertakes no obligation to publicly update or revise any forward-looking statements except as required by law.

About NGL Energy Partners LP

NGL Energy Partners LP is a Delaware limited partnership. NGL owns and operates a vertically integrated energy business with four primary businesses: water services, crude oil logistics, NGL logistics and retail. NGL completed its initial public offering in May 2011. For further information visit the Partnership's website at www.nglenergypartners.com.

OPERATIONAL DATA

The following table summarizes the volume of product sold and wastewater processed for the three months and nine months ended December 31, 2012 and 2011. Gallons sold by our natural gas liquids logistics segment shown in the table below include sales to our retail segment.

ADJUSTED EBITDA RECONCILIATION

The following tables reconcile net income (loss) attributable to parent equity to our EBITDA and Adjusted EBITDA, each of which are non-GAAP financial measures, for the periods indicated: