TULSA, Okla.--(BUSINESS WIRE)--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.
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NGL ENERGY PARTNERS LP AND SUBSIDIARIES Consolidated Balance Sheets March 31, 2013 and 2012 (U.S. Dollars in Thousands, except unit amounts) |
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| 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: | |||||||||
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General partner, representing a 0.1% interest, 53,676 and 29,245 notional units at March 31, 2013 and 2012, respectively |
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| (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 |
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$ | 749,519 | ||||
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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) |
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| 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 | ||||||||||||||||
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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, | |||||||
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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 | ) | ||||||||||||
