TULSA, Okla.--(BUSINESS WIRE)--NGL Energy Partners LP (NYSE: NGL) today reported net income attributable to limited partners for the six month period ended March 31, 2011, of $12.7 million and Adjusted EBITDA of $17.7 million. Net income per limited partner unit for the period was $1.16. NGL Energy Partners LP was formed on September 8, 2010, but had no operations through September 30, 2010. The consolidated statements of operations for NGL Energy Partners LP is presented for the six-month period ended March 31, 2011 as a result of the Partnership’s commencement of operations on October 1, 2011 and its fiscal year end of March 31, 2011.
During May 2011, the Partnership completed an initial public offering of common units, raising approximately $75.5 million net proceeds, including the exercise in full of the underwriters’ option to purchase additional common units. The offering’s net proceeds were used to repay $65 million in borrowings under the Partnership’s revolving credit facility, to redeem 175,000 common units held by the Partnership’s pre-initial public offering limited partners and for general partnership purposes.
EBITDA and Adjusted EBITDA are non-GAAP financial measures which we believe are used by industry analysts, investors, lenders, and rating agencies to assess the financial performance and the operating results of the Partnership's fundamental business activities and should not be considered in isolation or as a substitute for net income, income from operations, or other measures of cash flow. A table reconciling EBITDA and Adjusted EBITDA with appropriate GAAP financial measures is included in the summarized financial information in this release. The Partnership’s Adjusted EBITDA excludes from EBITDA the unrealized gain or loss on derivative contracts, the gain or loss on the disposal of assets and share-based compensation expenses.
NGL Energy Partners also announced that it has filed its annual report on Form 10-K for its fiscal year ended March 31, 2011 with the Securities and Exchange Commission. NGL has posted a copy of the Form 10-K on its website at www.nglenergypartners.com. Unitholders of NGL will be provided a copy of NGL's Form 10-K free of charge upon request. Any such request should be made in writing directed to: NGL Energy Partners LP, Investor Relations, 6120 South Yale Avenue, #805, Tulsa, OK 74136.
About NGL Energy Partners: NGL Energy Partners LP was formed in September 2010 by the merger of Hicksgas and NGL Supply. The Partnership owns and operates a vertically integrated energy business with three operating segments: midstream, wholesale supply and marketing, and retail propane. For further information about the Partnership and the financial results disclosed in this press release, see the Partnership website at www.nglenergypartners.com.
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NGL ENERGY PARTNERS LP AND NGL SUPPLY, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share amounts) (unaudited) |
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| NGL Energy | NGL Supply, | ||||||
| Partners LP | Inc. | ||||||
| March 31, | March 31, | ||||||
| 2011 | 2010 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 16,337 | $ | 24,238 | |||
| Accounts receivable, net of allowance for doubtful accounts | 43,677 | 37,183 | |||||
| Inventories | 12,697 | 7,283 | |||||
| Product exchanges | 427 | 2,746 | |||||
| Deferred tax assets | - | 215 | |||||
| Notes receivable | - | 125 | |||||
| Prepaid expenses and other current assets | 3,683 | 995 | |||||
| Total current assets | 76,821 | 72,785 | |||||
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PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation |
62,053 | 28,685 | |||||
| GOODWILL | 12,608 | 4,457 | |||||
| INTANGIBLE ASSETS, net of accumulated amortization | 12,351 | 5,628 | |||||
| OTHER | - | 25 | |||||
| Total assets | $ | 163,833 | $ | 111,580 | |||
| LIABILITIES AND EQUITY | |||||||
| CURRENT LIABILITIES: | |||||||
| Trade accounts payable | $ | 37,244 | $ | 35,373 | |||
| Accrued expenses and other payables | 3,711 | 4,745 | |||||
| Product exchanges | 1,045 | 1,005 | |||||
| Advance payments received from customers | 7,714 | 6,229 | |||||
| Current maturities of long-term debt | 830 | 752 | |||||
| Total current liabilities | 50,544 | 48,104 | |||||
| LONG-TERM DEBT, net of current maturities | 65,541 | 8,348 | |||||
| NON-CURRENT DEFERRED TAX LIABILITY | - | 5,222 | |||||
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OTHER NON-CURRENT LIABILITIES, net of current maturities |
395 | 503 | |||||
| COMMITMENTS AND CONTINGENCIES | |||||||
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REDEEMABLE PREFERRED STOCK; 1,000 shares authorized and outstanding; $10 par value |
3,000 | ||||||
| EQUITY: | |||||||
| Partnership equity — | |||||||
| General partner, representing a 0.1% interest, 10,945 notional units | 72 | ||||||
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Limited partners, representing a 99.9% interest - |
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Common units, 10,933,568 units issued and outstanding |
47,225 | ||||||
| Subordinated units, -0- units issued and outstanding | - | ||||||
| Accumulated other comprehensive income - | |||||||
| Foreign currency translation | 56 | ||||||
| Shareholders' equity— | |||||||
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Common stock - Class A, with full voting rights, $10 par value 100,000 shares authorized; 19,603 shares issued and outstanding |
196 | ||||||
| Additional paid-in capital | 36,039 | ||||||
| Retained earnings | 9,859 | ||||||
| Accumulated other comprehensive income (loss) - | |||||||
| Foreign currency translation | 84 | ||||||
| Noncontrolling interest | 225 | ||||||
| Total equity | 47,353 | 46,403 | |||||
| Total liabilities and equity | $ | 163,833 | $ | 111,580 | |||
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NGL ENERGY PARTNERS LP AND NGL SUPPLY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per unit or per share amounts) (unaudited) |
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| Year Ended March 31, 2011 | ||||||||||||||||||
| NGL Energy | ||||||||||||||||||
| Partners LP | NGL Supply, Inc. | |||||||||||||||||
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Six Months |
Six Months | |||||||||||||||||
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Ended |
Ended | |||||||||||||||||
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March 31, |
September 30, | Year Ended March 31, | ||||||||||||||||
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2011 |
2010 | 2010 | 2009 | |||||||||||||||
| REVENUES: | ||||||||||||||||||
| Retail propane operations | $ | 72,813 | $ | 6,868 | $ | 26,967 | $ | 30,248 | ||||||||||
| Wholesale supply and marketing | 546,782 | 309,029 | 704,436 | 701,484 | ||||||||||||||
| Midstream | 2,637 | 1,046 | 4,103 | 3,259 | ||||||||||||||
| Total Revenues | 622,232 | 316,943 | 735,506 | 734,991 | ||||||||||||||
| COST OF SALES: | ||||||||||||||||||
| Retail propane operations | 46,985 | 4,749 | 15,603 | 21,612 | ||||||||||||||
| Wholesale supply and marketing | 535,755 | 305,965 | 692,145 | 684,383 | ||||||||||||||
| Midstream | 292 | 194 | 467 | 423 | ||||||||||||||
| Total Cost of Sales | 583,032 | 310,908 | 708,215 | 706,418 | ||||||||||||||
| Gross Margin | 39,200 | 6,035 | 27,291 | 28,573 | ||||||||||||||
| OPERATING COSTS AND EXPENSES: | ||||||||||||||||||
| Operating | 15,898 | 5,231 | 11,523 | 11,075 | ||||||||||||||
| General and administrative | 5,024 | 3,210 | 6,326 | 5,577 | ||||||||||||||
| Depreciation and amortization | 3,441 | 1,389 | 2,781 | 2,490 | ||||||||||||||
| Operating Income (Loss) | 14,837 | (3,795 | ) | 6,661 | 9,431 | |||||||||||||
| OTHER INCOME (EXPENSE): | ||||||||||||||||||
| Interest income | 221 | 66 | 120 | 162 | ||||||||||||||
| Interest expense | (2,482 | ) | (372 | ) | (668 | ) | (1,621 | ) | ||||||||||
| Other, net | 103 | 124 | (5 | ) | 152 | |||||||||||||
| Income (Loss) Before Income Taxes | 12,679 | (3,977 | ) | 6,108 | 8,124 | |||||||||||||
| INCOME TAX PROVISION (BENEFIT) | - | (1,417 | ) | 2,478 | 3,255 | |||||||||||||
| Net Income (Loss) | 12,679 | (2,560 | ) | 3,630 | 4,869 | |||||||||||||
| INCOME ALLOCABLE TO GENERAL PARTNER | 13 | - | - | - | ||||||||||||||
| NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST | - | 45 | 6 | 80 | ||||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO LIMITED | ||||||||||||||||||
| PARTNERS OR PARENT EQUITY | $ | 12,666 | $ | (2,515 | ) | $ | 3,636 | $ | 4,949 | |||||||||
| BASIC AND DILUTED NET INCOME PER LIMITED PARTNER UNIT: | ||||||||||||||||||
| Common units | $ | 1.16 | ||||||||||||||||
| Subordinated units | $ | - | ||||||||||||||||
| BASIC AND DILUTED WEIGHTED AVERAGE UNITS OUTSTANDING: | ||||||||||||||||||
| Common units |
10,933,568 |
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| Subordinated units | - | |||||||||||||||||
| BASIC NET INCOME (LOSS) PER COMMON SHARE | $ | (128.46 | ) | $ | 178.75 | $ | 242.82 | |||||||||||
| BASIC WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 19,711 | 19,603 | 19,603 | |||||||||||||||
| DILUTED NET INCOME (LOSS) PER COMMON SHARE | $ | (128.46 | ) | $ | 176.61 | $ | 239.92 | |||||||||||
| DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 19,711 | 19,840 | 19,840 | |||||||||||||||
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NGL ENERGY PARTNERS LP AND NGL SUPPLY, INC. SUMMARIZED OPERATING INFORMATION (Volumes in thousand gallons) (unaudited) |
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| Year Ended March 31, 2011 | |||||||||||||||||
| NGL Energy | |||||||||||||||||
| Partners LP | NGL Supply, Inc. | NGL Supply, Inc. | |||||||||||||||
| Six Months Ended | Six Months Ended | Years Ended | |||||||||||||||
| March 31, | September 30, | March 31, | |||||||||||||||
| 2011 | 2010 | 2010 | 2009 | 2008 | 2007 | ||||||||||||
| Volume Information | |||||||||||||||||
| Retail propane sales volumes | 34,101 | 3,747 | 15,514 | 14,033 | 10,239 | - | |||||||||||
| Wholesale volumes - propane | 372,504 | 226,330 | 623,510 | 510,255 | 506,909 | 499,320 | |||||||||||
| Wholesale volumes - other NGLs | 49,465 | 46,092 | 53,878 | 58,523 | 88,808 | 159,752 | |||||||||||
| Midstream terminal throughput volumes | 110,146 | 43,704 | 170,621 | 136,818 | 130,348 | 128,168 | |||||||||||
ADJUSTED EBITDA RECONCILIATION
The following tables reconcile net income, or net income (loss) to parent, 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. | |||||||||||||||||||
| Six Months Ended | Six Months Ended | Year Ended | ||||||||||||||||||
| March 31, | September 30, | March 31, | ||||||||||||||||||
| 2011 | 2010 | 2010 | 2009 | |||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| EBITDA: | ||||||||||||||||||||
| Net income or net income (loss) to parent | $ | 12,679 | $ | (2,515 | ) | $ | 3,636 | $ | 4,949 | |||||||||||
| Provision (benefit) for income taxes | - | (1,417 | ) | 2,478 | 3,255 | |||||||||||||||
| Interest expense | 2,482 | 372 | 668 | 1,621 | ||||||||||||||||
| Depreciation and amortization | 3,841 | 1,789 | 3,752 | 3,290 | ||||||||||||||||
| EBITDA | $ | 19,002 | $ | (1,771 | ) | $ | 10,534 | $ | 13,115 | |||||||||||
| Unrealized (gain) loss on derivative contracts | (1,357 | ) | 200 | (563 | ) | 17 | ||||||||||||||
| Loss (gain) on sale of assets | 16 | (124 | ) | 11 | (150 | ) | ||||||||||||||
| Share-based compensation expense | - | - | - | 97 | ||||||||||||||||
| Adjusted EBITDA | $ | 17,661 | $ | (1,695 | ) | $ | 9,982 | $ | 13,079 | |||||||||||
We define EBITDA as net income, or net income (loss) attributable to parent entity, plus income taxes, interest expense and depreciation and amortization expense. We define Adjusted EBITDA as EBITDA excluding the unrealized gain or loss on derivative contracts, 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. We believe that EBITDA provides additional information for evaluating our ability to make quarterly distributions to our unitholders and is presented solely as a supplemental measure. We believe that Adjusted EBITDA provides additional information for evaluating our financial performance without regard to our financing methods, capital structure and historical cost basis. Further, EBITDA and Adjusted EBITDA, as we define them, may not be comparable to EBITDA and Adjusted EBITDA or similarly titled measures used by other entities.