Investor Presentation
August 2023
NGL - Company Overview1
Water Solutions
▪Provides water transportation, treating, recycling and handling services for upstream customers
▪Largest integrated water solutions network of injection wells and large diameter pipe in the Delaware Basin
▪Predictable cash flows supported by long-term fixed fee contracts, acreage dedications and minimum volume commitments
Pg 2
Crude Oil Logistics
▪Purchases crude oil from producers and marketers for sale at multiple refineries and trading hubs
▪Network of owned storage, terminal and transportation services, including Grand Mesa Pipeline
▪Supported by acreage dedications and minimum volume commitments
Liquids Logistics
▪Supplier of NGL's, refined products and
biodiesel to a broad range of end-users across the United States and Canada
▪Operations are conducted through 25 owned terminals, third-party storage and terminal facilities, nine common carrier pipelines and a fleet of leased railcars
▪Provides marine exports of butane through owned facility located in Chesapeake, VA
•Owner of Ambassador Pipeline in Michigan, the largest retail propane demand state in the U.S
Pg 2 | (1) Assets as of 3/31/23. |
NGL Financial Strategy & Priorities
Financial Leverage
- Free cash flow utilized for debt reduction
- Monetize non-core assets using proceeds to reduce absolute debt
- Comfortably below 4.0x total leverage by March 31, 2024
Debt Maturities
Financial Policies
- Capital Structures
Liquidity
- Retire 2025 unsecured notes no later than March 31, 2024, possibly sooner
- Refinance remaining notes outstanding within the first half of calendar 2024
- Debt reduction as the top strategic priority
- Currently, no plan to pay preferred distributions in calendar 2023
- Purchased $99.3MM of the 2025 unsecured notes since March 31, 2023
- Anticipated cash flows from operations and the borrowing capacity under ABL facility will be sufficient to meet liquidity needs, manage inventory throughout blending and heating seasons
- Closed permanent extension of $100MM ABL accordion through stated maturity of February 2026
Pg 3
NGL - Improving Leverage
TTM Adjusted EBITDA and Leverage Trend
700 | 7.00x | ||||||
Millions) | 6.11x | $633 | $643 | (TTM) | |||
5.96x | $617 | ||||||
650 | |||||||
6.00x | |||||||
EBITDA (In | 600 | Adj EBITDA | |||||
550 | $575 | 5.00x | |||||
$571 | 5.28x | ||||||
TTM Adjusted | Total Debt/ | ||||||
500 | 4.56x | 4.40x | |||||
4.00x | |||||||
450 | |||||||
400 | 3.00x | ||||||
6/30/2022 | 9/30/2022 | 12/31/2022 | 3/31/2023 | 1QFY24 | |||
Adj EBITDA (TTM) | Leverage Ratio |
Asset Sales of $21.1 Million | Water Solutions Disposal Fees up in 1Q24 to |
$0.64 from $0.58 in 1Q23 | |
1Q'24 Highlights
$99.3 Million in Debt Purchased | Reduced Total Leverage to 4.40x, Down from |
4.56x at March 31, 2023 | |
Pg 4 | Pg 4 |
Water - Operational & Financial Trend
Strong Operational & Financial Performance
Adjusted EBITDA - 26% 3-Year CAGR
$550 | $485+ | |||
$500 | ||||
$462 | ||||
$450 | ||||
(In Millions) | $400 | |||
$350 | $342 | |||
$300 | ||||
$242 | ||||
$250 | ||||
$200 | ||||
$150 | ||||
FY21 | FY22 | FY23 | FYE24 |
Produced Water Processed - 23% 3-Year CAGR
3,000 | |||||
(KBPD) | 2,560 | ||||
2,500 | 2,327 | ||||
Pcocessed | 2,000 | 1,798 | |||
1,500 | 1,365 | ||||
Water | 1,000 | ||||
Produced | |||||
500 | |||||
- | |||||
FY21 | FY22 | FY23 | FYE24 |
Operating Expense - Down 14%
$0.30 | ||||
$0.29 | ||||
Barrel) | $0.29 | |||
$0.28 | ||||
$0.27 | ||||
(Per | ||||
$0.27 | ||||
Expense | $0.26 | |||
$0.25 | $0.25 | |||
$0.25 | ||||
Operating | ||||
$0.24 | ||||
$0.23 | ||||
$0.22 | ||||
FY21 | FY22 | FY23 | FYE24 |
Skim Oil Production - 27% 3-Year CAGR
4,500 | ~ | ||||
4,000 | |||||
4,000 | 3,764 | ||||
3,500 | |||||
Bpd | 3,000 | 2,864 | |||
Sold | 2,500 | 1,957 | |||
Oil | 2,000 | ||||
Skim | 1,500 | ||||
1,000 | |||||
500 | |||||
- | |||||
FY21 | FY22 | FY23 | FYE24 |
Pg 5
All references to FYE24 are based on most recent guidance & estimates.
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Disclaimer
NGL Energy Partners LP published this content on 09 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2023 20:52:37 UTC.