NGL Energy Partners LP Announces Fiscal 2013 Results And Filing Of Form 10-K

NGL Energy Partners LP (NYSE:NGL) today reported net income of $48.2 million and Adjusted EBITDA of $183.5 million (exclusive of acquisition costs of $5.6 million, which were recorded as general and administrative expenses) for the year ended March 31, 2013. Net income per limited partner common unit for the year was $0.96.

NGL’s Chief Executive Officer, H. Michael Krimbill, said, “We are excited to announce results that continue to exceed our prior guidance for the fiscal year. We are growing our asset base to further enhance our ability to provide customers with a full range of services in our water services, crude oil logistics and natural gas liquids logistics businesses. Highlights include:
  • We completed and integrated thirteen acquisitions during fiscal 2013.
  • We continued our internal growth initiative, spending approximately $59 million for organic growth capital expenditures in fiscal 2013 to expand our water services capacity, natural gas liquids terminal capabilities, and crude oil logistics capabilities.
  • We increased our bank lines of credit to $1.05 billion while improving our leverage ratio to under 3.0x. Our balance sheet remains strong, enabling us to respond quickly to opportunities.
  • We have increased our annual distribution per limited partner unit over 30%, from $1.45 per unit to the current $1.91 per unit.

Looking forward to fiscal 2014:
  • Our Adjusted EBITDA for the year is expected to be in the range of $230-$235 million. This is inclusive of our barge business acquisition at the end of December 2012 as well as the incremental EBITDA from the $59 million of organic growth capital expenditures in fiscal 2013. This does not give effect to acquisitions or organic growth projects that may take place in fiscal 2014.
  • In fiscal 2014 we expect to spend $22 million on maintenance capital expenditures and $60-$70 million on organic growth projects, predominantly in water services and crude oil logistics. In addition, we anticipate acquisition capital expenditures in the range of $300-$500 million.
  • We expect to generate at least $170 million of Adjusted EBITDA less interest expense of $38 million and maintenance capital expenditures of $22 million.
  • With respect to our distribution per common unit, we anticipate a 10-12% increase over the next four quarters”.

NGL also announced that it has filed its annual report on Form 10-K for its fiscal year ended March 31, 2013 with the Securities and Exchange Commission. NGL has posted a copy of the Form 10-K on its website at www.nglenergypartners.com.

A conference call to discuss NGL's results of operations is scheduled for 11:00 a.m. Eastern Time (10:00 a.m. Central Time) on June 14, 2013. Analysts, investors, and other interested parties may access the conference call by dialing (800) 706-7749 and providing access code 61511623. An audio replay of the conference call will be available for 7 days beginning at 12:00 p.m. Eastern Time on June 14, 2013 and can be accessed by dialing (888) 286-8010 and providing access code 97163294.

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 propane. NGL completed its initial public offering in May 2011. For further information visit the Partnership's website at www.nglenergypartners.com.
       

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2013 and 2012

(U.S. Dollars in Thousands, except unit amounts)
 
March 31, March 31,
2013 2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 11,561 $ 7,832
Accounts receivable, net of allowance for doubtful accounts of $1,760 and $818, respectively
562,889 84,004
Accounts receivable - affiliates 22,883 2,282
Inventories 126,895 94,504
Prepaid expenses and other current assets   37,891     10,002
Total current assets 762,119 198,624
 
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $51,027 and $12,843, respectively
516,937 231,394
GOODWILL 563,146 167,245
INTANGIBLE ASSETS, net of accumulated amortization of $44,155 and $8,174, respectively
442,603 149,490
OTHER NONCURRENT ASSETS   6,542     2,766
Total assets $ 2,291,347   $ 749,519
 
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Trade accounts payable $ 535,687 $ 81,369
Accrued expenses and other payables 85,703 14,143
Advance payments received from customers 22,372 20,293
Accounts payable - affiliates 6,900 9,462
Current maturities of long-term debt   8,626     19,534
Total current liabilities 659,288 144,801
 
LONG-TERM DEBT, net of current maturities 740,436 199,177
OTHER NONCURRENT LIABILITIES 2,205 212
 
COMMITMENTS AND CONTINGENCIES
 
PARTNERS' EQUITY:

General partner, representing a 0.1% interest, 53,676 and 29,245 notional units at March 31, 2013 and 2012, respectively
(50,497 ) 442
Limited partners, representing a 99.9% interest -
Common units, 47,703,313 and 23,296,253 units issued and outstanding at March 31, 2013 and 2012, respectively
920,998 384,604
Subordinated units, 5,919,346 units issued and outstanding at March 31, 2013 and 2012
13,153 19,824
Accumulated other comprehensive income -
Foreign currency translation 24 31
Noncontrolling interest   5,740     428
Total partners' equity   889,418     405,329
Total liabilities and partners' equity $ 2,291,347  

 
$ 749,519
           

 

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

AND NGL SUPPLY, INC.

Consolidated Statements of Operations

For the Years Ended March 31, 2013 and 2012

and the Six Months Ended March 31, 2011 and September 30, 2010

(U.S. Dollars in Thousands, except unit, per unit, share, and per share amounts)
 
NGL Energy Partners LP NGL Supply, Inc.
    Six Months Six Months
Year Ended

Year Ended
Ended Ended
March 31,

March 31,
March 31, September 30,
  2013     2012     2011       2010  
REVENUES:
Crude oil logistics $ 2,316,288 $ - $ - $ -
Water services 62,227 - - -
Natural gas liquids logistics 1,604,746 1,111,139 549,419 310,075
Retail propane 430,273 199,334 72,813 6,868
Other   4,233     -     -     -  
Total Revenues   4,417,767     1,310,473     622,232     316,943  
 
COST OF SALES:
Crude oil logistics 2,244,647 - - -
Water services 5,611 - - -
Natural gas liquids logistics 1,530,459 1,086,881 536,047 306,159
Retail propane   258,393     130,142     46,985     4,749  
Total Cost of Sales   4,039,110     1,217,023     583,032     310,908  
 
OPERATING COSTS AND EXPENSES:
Operating 169,799 47,300 15,898 5,231
General and administrative 52,698 16,009 5,024 3,210
Depreciation and amortization   68,853     15,111     3,441     1,389  
Operating Income (Loss) 87,307 15,030 14,837 (3,795 )
 
OTHER INCOME (EXPENSE):
Interest income 1,261 765 221 66
Interest expense (32,994 ) (7,620 ) (2,482 ) (372 )
Loss on early extinguishment of debt (5,769 ) - - -
Other, net   260     290     103     124  
Income (Loss) Before Income Taxes 50,065 8,465 12,679 (3,977 )
 
INCOME TAX (PROVISION) BENEFIT   (1,875 )   (601 )   -     1,417  
 
Net Income (Loss) 48,190 7,864 12,679 (2,560 )
 
NET INCOME ALLOCATED TO GENERAL PARTNER (2,917 ) (8 ) (13 ) -
 
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST (250 ) 12 - 45
 

 
       

NET INCOME (LOSS) ATTRIBUTABLE TO PARENT EQUITY ALLOCATED TO LIMITED PARTNERS
$ 45,023   $ 7,868   $ 12,666   $ (2,515 )
 
 
BASIC AND DILUTED EARNINGS PER LIMITED PARTNER UNIT:
Common units $ 0.96   $ 0.32   $ 1.16  
Subordinated units $ 0.93   $ 0.58   $ -  
BASIC AND DILUTED WEIGHTED AVERAGE UNITS OUTSTANDING:
Common units   41,353,574     15,169,983     10,933,568  
Subordinated units   5,919,346     5,175,384     -  
 
BASIC AND DILUTED LOSS PER COMMON SHARE $ (128.46 )
 
BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
  19,711  
 

OPERATIONAL DATA

The following table summarizes the volume of product sold and wastewater delivered for the years ended March 31, 2013 and 2012. Gallons sold by our natural gas liquids logistics segment shown in the table below include sales to our retail segment.

       
Year Ended
March 31,

Segment
2013 2012
(in thousands)
Crude oil logistics:
Crude oil barrels sold 24,373
 
Water services:
Barrels of water delivered 25,009
 
Natural gas liquids logistics:
Propane gallons sold 912,625 659,921
Other natural gas liquids gallons sold 632,695 134,999
 
Retail propane:
Propane gallons sold 144,379 78,236
Distillate gallons sold 28,853 1,650
 

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:

       
NGL Energy Partners LP NGL Supply, Inc.
Year Ended     Year Ended     Six Months Ended Six Months Ended
March 31, March 31, March 31, September 30,
  2013   2012     2011     2010  
 
EBITDA:
Net income (loss) attributable to parent equity $ 47,940 $ 7,876 $ 12,679 $ (2,515 )
Provision (benefit) for income taxes 1,875 601 - (1,417 )
Interest expense 32,994 7,620 2,482 372
Loss on early extinguishment of debt 5,769 - - -
Depreciation and amortization   73,739   15,911     3,841     1,789  
EBITDA $ 162,317 $ 32,008 $ 19,002 $ (1,771 )
Unrealized (gain) loss on derivative contracts 5,275 4,384 (1,357 ) 200
Loss (gain) on sale of assets 187 (71 ) 16 (124 )
Share-based compensation expense   10,138   -     -     -  
Adjusted EBITDA $ 177,917 $ 36,321   $ 17,661   $ (1,695 )

Copyright Business Wire 2010

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