NGL Energy Partners LP (NYSE:NGL) today reported the following plans
with respect to distribution policy, capital needs and liquidity:
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NGL is not contemplating a distribution cut. However it anticipates
not increasing its distributions per common unit during calendar year
2016. NGL is targeting a distribution coverage ratio of 1.2 – 1.4x in
fiscal year 2017, during which it expects to place the Grand Mesa
Pipeline and additional Sawtooth assets into service.
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NGL expects total CAPEX requirements of $350-$400 million over the
next 12-18 months to fund organic projects, including Grand Mesa. NGL
anticipates that during this period, its acquisition activity will be
curtailed to the extent that the higher cost of capital in the current
commodity price environment would result in acquisitions not being
accretive.
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The Partnership expects to have sufficient liquidity to fund its
capital needs through a combination of preferred equity, asset sales,
bank debt, and unsecured indebtedness.
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NGL’s General Partner is debt-free and can support the MLP.
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: crude oil logistics, water solutions, liquids, retail
propane and refined products and renewables. For further information
visit NGL’s website at www.nglenergypartners.com.
Forward-Looking Statements
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 filings with the
Securities and Exchange Commission. 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.
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