NGL Energy Partners LP (NYSE:NGL) today reported Adjusted EBITDA of
$70.4 million for the three months ended September 30, 2014 (exclusive
of $3.2 million of advisory and legal costs related to acquisitions and
$5.0 million of severance/retention costs related to the Gavilon and
TransMontaigne acquisitions), compared to Adjusted EBITDA of $42.1
million during the three months ended September 30, 2013 (exclusive of
$0.8 million of costs related to acquisitions). NGL reported a net loss
of $15.9 million for the three months ended September 30, 2014, compared
to net loss of $0.9 million for the three months ended September 30,
2013. Net loss per limited partner common unit for the three months
ended September 30, 2014 was $(0.34), compared to net loss per limited
partner common unit of $(0.05) for the three months ended September 30,
2013.
For the six months ended September 30, 2014, Adjusted EBITDA of $113.5
million (exclusive of $4.3 million of advisory and legal costs related
to acquisitions and $7.7 million of severance/retention costs related to
the Gavilon and TransMontaigne acquisitions), compared to Adjusted
EBITDA of $69.5 million during the six months ended September 30, 2013
(exclusive of $1.4 million of costs related to acquisitions). NGL
reported a net loss of $55.8 million for the six months ended September
30, 2014, compared to a net loss of $18.4 million for the six months
ended September 30, 2013. Net loss per limited partner common unit for
the six months ended September 30, 2014 was $(0.93), compared to a net
loss per limited partner common unit of $(0.37) for the six months ended
September 30, 2013.
NGL’s recent accomplishments include the following:
-
Formation of Grand Mesa Pipeline, LLC (“Grand Mesa”), a joint venture
for which NGL has a 50% ownership interest. Grand Mesa is building a
crude oil pipeline originating in Weld County, Colorado, and
terminating at NGL’s crude oil storage terminal in Cushing, Oklahoma.
An open season was successfully completed and right-of-way is
currently being acquired. NGL expects this project to significantly
increase its fee-based cash flows upon completion.
-
NGL announced plans to build a crude oil transloading facility, backed
by executed producer commitments, capable of handling unit trains west
of Albuquerque, New Mexico in the San Juan Basin. The terminal will
provide producers with new options for reaching multiple domestic
markets via an interconnect with the BNSF Railway Company
transcontinental mainline.
-
The acquisition of TransMontaigne Inc. in July 2014. As part of the
acquisition, NGL acquired line space on Plantation and Colonial
Pipelines, refined products purchase and sale contracts, and the
general partner interest and a 19.7% limited partner interest in
TransMontaigne Partners L.P., a publicly-traded partnership that
conducts refined products and crude oil transportation and terminaling
operations.
In addition, NGL reaffirms its Adjusted EBITDA guidance of $425 million
for fiscal year 2015 and approximately 18% distribution growth for
calendar year 2014 with a 10% distribution growth thereafter.
A conference call to discuss NGL's results of operations is scheduled
for 3:00pm Eastern Time (2:00pm Central Time) on November 11, 2014.
Analysts, investors, and other interested parties may access the
conference call by dialing (866) 953-6857 and providing access code
40384476. An archived audio replay of the conference call will be
available for 7 days beginning at 7:00pm Eastern Time (6:00pm Central
Time) on November 11, 2014 and can be accessed by dialing (888) 286-8010
and providing access code 74723157.
NGL also announced that it has filed its quarterly report on Form 10-Q
for its fiscal quarter ended September 30, 2014 with the Securities and
Exchange Commission. NGL has posted a copy of the Form 10-Q on its
website at www.nglenergypartners.com.
NGL defines EBITDA as net income (loss) attributable to parent equity,
plus interest expense, income taxes, and depreciation and amortization
expense. NGL defines Adjusted EBITDA as EBITDA excluding the unrealized
gain or loss on derivative contracts, the gain or loss on the disposal
or impairment of assets, and share-based compensation expense. For
purposes of NGL’s Adjusted EBITDA calculation, NGL draws a distinction
between unrealized gains and losses on derivatives and realized gains
and losses on derivatives. During the period when a derivative contract
is open, NGL records changes in the fair value of the derivative as an
unrealized gain or loss. When a derivative contract is settled, NGL
reverses the previously-recorded unrealized gain or loss and records a
realized gain or loss. The realized gain or loss is equal to the amount
received or paid on the contract. NGL acquired Gavilon Energy in
December 2013 and TransMontaigne in July 2014. NGL is still in the
process of developing procedures to calculate realized and unrealized
gains and losses for the Gavilon Energy and TransMontaigne operations in
the same way NGL calculates them for its other operations. Accordingly,
the net unrealized gains and losses in the Adjusted EBITDA table below
exclude any unrealized gains and losses related to Gavilon Energy and
TransMontaigne. For the three months and six months ended September 30,
2014, NGL excluded a lower-of-cost-or-market adjustment to crude oil
inventory from the calculation of Adjusted EBITDA. A large portion of
this adjustment was hedged through financial derivatives, and the
related unrealized gain has also been excluded from the calculation of
Adjusted EBITDA.
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 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 five primary
businesses: water solutions, crude oil logistics, NGL logistics, refined
products/renewables and retail propane. For further information visit
the Partnership's website at www.nglenergypartners.com.
|
NGL ENERGY PARTNERS LP
|
Unaudited Condensed Consolidated Balance Sheets
|
September 30, 2014 and March 31, 2014
|
(U.S. Dollars in Thousands, except unit amounts)
|
|
|
|
September 30,
|
March 31,
|
|
|
|
2014
|
|
|
|
2014
|
|
ASSETS
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
11,823
|
|
|
$
|
10,440
|
|
Accounts receivable - trade, net of allowance for doubtful
accounts of $2,816 and $2,822, respectively
|
|
|
1,433,117
|
|
|
|
900,904
|
|
Accounts receivable - affiliates
|
|
|
41,706
|
|
|
|
7,445
|
|
Inventories
|
|
|
941,589
|
|
|
|
310,160
|
|
Prepaid expenses and other current assets
|
|
|
156,818
|
|
|
|
80,350
|
|
Total current assets
|
|
|
2,585,053
|
|
|
|
1,309,299
|
|
|
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of
$153,057 and $109,564, respectively
|
|
|
1,433,313
|
|
|
|
829,346
|
|
GOODWILL
|
|
|
1,170,490
|
|
|
|
1,107,006
|
|
INTANGIBLE ASSETS, net of accumulated amortization of $166,484 and
$116,728, respectively
|
|
|
838,088
|
|
|
|
714,956
|
|
INVESTMENTS IN UNCONSOLIDATED ENTITIES
|
|
|
482,644
|
|
|
|
189,821
|
|
OTHER NONCURRENT ASSETS
|
|
|
42,091
|
|
|
|
16,795
|
|
Total assets
|
|
$
|
6,551,679
|
|
|
$
|
4,167,223
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
Accounts payable - trade
|
|
$
|
1,345,024
|
|
|
$
|
740,211
|
|
Accounts payable - affiliates
|
|
|
85,307
|
|
|
|
76,846
|
|
Accrued expenses and other payables
|
|
|
218,482
|
|
|
|
141,690
|
|
Advance payments received from customers
|
|
|
106,105
|
|
|
|
29,965
|
|
Current maturities of long-term debt
|
|
|
5,062
|
|
|
|
7,080
|
|
Total current liabilities
|
|
|
1,759,980
|
|
|
|
995,792
|
|
|
|
|
|
|
LONG-TERM DEBT, net of current maturities
|
|
|
2,437,351
|
|
|
|
1,629,834
|
|
OTHER NONCURRENT LIABILITIES
|
|
|
39,518
|
|
|
|
9,744
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
General partner, representing a 0.1% interest, 88,634 and 79,420
notional units at September 30, 2014 and March 31, 2014,
respectively
|
|
|
(39,690
|
)
|
|
|
(45,287
|
)
|
Limited partners, representing a 99.9% interest -
|
|
|
|
|
Common units, 88,545,764 and 73,421,309 units issued and
outstanding at September 30, 2014 and March 31, 2014, respectively
|
|
|
1,785,823
|
|
|
|
1,570,074
|
|
Subordinated units, 5,919,346 units issued and outstanding at March
31, 2014
|
|
|
-
|
|
|
|
2,028
|
|
Accumulated other comprehensive loss
|
|
|
(73
|
)
|
|
|
(236
|
)
|
Noncontrolling interests
|
|
|
568,770
|
|
|
|
5,274
|
|
Total equity
|
|
|
2,314,830
|
|
|
|
1,531,853
|
|
Total liabilities and equity
|
|
$
|
6,551,679
|
|
|
$
|
4,167,223
|
|
|
NGL ENERGY PARTNERS LP
|
Unaudited Condensed Consolidated Statements of Operations
|
For the Three Months and Six Months Ended September 30, 2014 and
2013
|
(U.S. Dollars in Thousands, except unit and per unit amounts)
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
Crude oil logistics
|
|
$
|
2,111,143
|
|
|
$
|
1,014,008
|
|
|
$
|
4,040,426
|
|
|
$
|
1,944,802
|
|
Water solutions
|
|
|
52,719
|
|
|
|
34,190
|
|
|
|
100,033
|
|
|
|
54,703
|
|
Liquids
|
|
|
539,753
|
|
|
|
484,874
|
|
|
|
1,014,910
|
|
|
|
845,833
|
|
Retail propane
|
|
|
68,358
|
|
|
|
59,380
|
|
|
|
146,260
|
|
|
|
131,597
|
|
Refined products and renewables
|
|
|
2,607,220
|
|
|
|
-
|
|
|
|
3,724,717
|
|
|
|
-
|
|
Other
|
|
|
1,333
|
|
|
|
1,485
|
|
|
|
2,794
|
|
|
|
2,959
|
|
Total Revenues
|
|
|
5,380,526
|
|
|
|
1,593,937
|
|
|
|
9,029,140
|
|
|
|
2,979,894
|
|
|
|
|
|
|
|
|
|
|
COST OF SALES:
|
|
|
|
|
|
|
|
|
Crude oil logistics
|
|
|
2,083,712
|
|
|
|
992,135
|
|
|
|
3,981,351
|
|
|
|
1,901,354
|
|
Water solutions
|
|
|
(9,439
|
)
|
|
|
3,782
|
|
|
|
1,134
|
|
|
|
4,365
|
|
Liquids
|
|
|
514,064
|
|
|
|
459,394
|
|
|
|
976,080
|
|
|
|
809,645
|
|
Retail propane
|
|
|
39,894
|
|
|
|
33,539
|
|
|
|
87,418
|
|
|
|
76,562
|
|
Refined products and renewables
|
|
|
2,550,851
|
|
|
|
-
|
|
|
|
3,665,164
|
|
|
|
-
|
|
Other
|
|
|
383
|
|
|
|
-
|
|
|
|
2,371
|
|
|
|
-
|
|
Total Cost of Sales
|
|
|
5,179,465
|
|
|
|
1,488,850
|
|
|
|
8,713,518
|
|
|
|
2,791,926
|
|
|
|
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES:
|
|
|
|
|
|
|
|
|
Operating
|
|
|
101,553
|
|
|
|
55,769
|
|
|
|
169,421
|
|
|
|
104,814
|
|
General and administrative
|
|
|
41,639
|
|
|
|
14,312
|
|
|
|
69,512
|
|
|
|
32,766
|
|
Depreciation and amortization
|
|
|
50,099
|
|
|
|
25,061
|
|
|
|
89,474
|
|
|
|
47,785
|
|
Operating Income (Loss)
|
|
|
7,770
|
|
|
|
9,945
|
|
|
|
(12,785
|
)
|
|
|
2,603
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
|
|
|
Earnings of unconsolidated entities
|
|
|
3,697
|
|
|
|
-
|
|
|
|
6,262
|
|
|
|
-
|
|
Interest expense
|
|
|
(28,651
|
)
|
|
|
(11,060
|
)
|
|
|
(49,145
|
)
|
|
|
(21,682
|
)
|
Other, net
|
|
|
(617
|
)
|
|
|
419
|
|
|
|
(1,008
|
)
|
|
|
469
|
|
Loss Before Income Taxes
|
|
|
(17,801
|
)
|
|
|
(696
|
)
|
|
|
(56,676
|
)
|
|
|
(18,610
|
)
|
|
|
|
|
|
|
|
|
|
INCOME TAX (PROVISION) BENEFIT
|
|
|
1,922
|
|
|
|
(236
|
)
|
|
|
887
|
|
|
|
170
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
|
(15,879
|
)
|
|
|
(932
|
)
|
|
|
(55,789
|
)
|
|
|
(18,440
|
)
|
|
|
|
|
|
|
|
|
|
LESS: NET INCOME ALLOCATED TO GENERAL PARTNER
|
|
|
(11,056
|
)
|
|
|
(2,451
|
)
|
|
|
(20,437
|
)
|
|
|
(4,139
|
)
|
|
|
|
|
|
|
|
|
|
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
|
(3,345
|
)
|
|
|
(9
|
)
|
|
|
(3,410
|
)
|
|
|
(134
|
)
|
|
|
|
|
|
|
|
|
|
NET LOSS ALLOCATED TO LIMITED PARTNERS
|
|
$
|
(30,280
|
)
|
|
$
|
(3,392
|
)
|
|
$
|
(79,636
|
)
|
|
$
|
(22,713
|
)
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED LOSS PER COMMON UNIT
|
|
$
|
(0.34
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.93
|
)
|
|
$
|
(0.37
|
)
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING
|
|
|
88,331,653
|
|
|
|
58,909,389
|
|
|
|
81,267,742
|
|
|
|
53,336,969
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA RECONCILIATION
The following table reconciles net loss attributable to parent equity to
EBITDA and Adjusted EBITDA, each of which are non-GAAP financial
measures, for the periods indicated:
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
(in thousands)
|
|
|
|
|
Net loss attributable to parent equity
|
|
$
|
(19,224
|
)
|
|
$
|
(941
|
)
|
|
$
|
(59,199
|
)
|
|
$
|
(18,574
|
)
|
Income tax provision (benefit)
|
|
|
(1,933
|
)
|
|
|
236
|
|
|
|
(898
|
)
|
|
|
(170
|
)
|
Interest expense
|
|
|
27,929
|
|
|
|
11,060
|
|
|
|
48,446
|
|
|
|
21,682
|
|
Depreciation and amortization
|
|
|
48,366
|
|
|
|
25,753
|
|
|
|
92,716
|
|
|
|
48,948
|
|
EBITDA
|
|
|
55,138
|
|
|
|
36,108
|
|
|
|
81,065
|
|
|
|
51,886
|
|
Net unrealized (gains) losses on derivative contracts
|
|
|
(13,700
|
)
|
|
|
167
|
|
|
|
(8,690
|
)
|
|
|
3,745
|
|
Lower of cost or market adjustment
|
|
|
2,837
|
|
|
|
-
|
|
|
|
2,837
|
|
|
|
-
|
|
Loss on disposal or impairment of assets
|
|
|
4,150
|
|
|
|
1,790
|
|
|
|
4,608
|
|
|
|
2,163
|
|
Equity-based compensation expense
|
|
|
13,745
|
|
|
|
3,217
|
|
|
|
21,659
|
|
|
|
10,292
|
|
Adjusted EBITDA
|
|
$
|
62,170
|
|
|
$
|
41,282
|
|
|
$
|
101,479
|
|
|
$
|
68,086
|
|
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