NGL Energy Partners Announces Quarterly Distributions; Provides Business Update and Schedules Earnings Call
October 27 2020 - 6:30AM
Business Wire
NGL Energy Partners LP (NYSE: NGL) announced today that the
Board of Directors of its general partner has declared a quarterly
distribution of $0.10 per unit, or $0.40 per unit on an annualized
basis, for the quarter ended September 30, 2020. This cash
distribution is payable on November 13, 2020 to common unitholders
of record at the close of business on November 6, 2020.
“Our Board has made the strategic decision to adjust our
annualized common unit distribution to $0.40 per unit,” stated Mike
Krimbill, NGL’s CEO. “Numerous considerations factored into this
decision. Our business segments performed in-line with our
expectations during the fiscal second quarter and we expect over
5.0x common unit coverage for the period. We are working with our
bank group to extend our credit facility maturity. This
distribution adjustment should benefit those discussions. We were
also yielding over 20% on our common units and we believe the best
use of our cash at this time is to reduce indebtedness, improve
leverage and reduce bank commitments in the short-term.”
Continued Krimbill, “Our business has continued to perform well
despite the challenges faced by the energy industry and the
Partnership. Since the end of the quarter, we have successfully
completed our Poker Lake pipeline and tie-in and have seen produced
water volumes average approximately 1.6 million barrels per day. We
continue to see incremental activity around our Northern Delaware
Basin water platform and expect volumes to trend favorably through
the remainder of the fiscal year. We are entering the winter
gasoline butane-blending and propane heating season in a strong
position and expect our Liquids segment to perform well again this
year. With respect to debt reduction, we continue to identify
opportunities to monetize assets at favorable multiples and, since
March 2020, we have repurchased and retired approximately $125
million of unsecured notes at a discount, resulting in a net $50
million debt reduction.”
In addition to the common unit distribution, the Board of
Directors declared a cash distribution in the required amount of
$15.6 million, which amount represents the Class D Distribution
Amount to be paid to the holders of the Class D Preferred Units.
The Class D Preferred distribution will also be made on November
13, 2020.
NGL plans to issue its fiscal second quarter ended September 30,
2020 earnings press release post-market close on Monday November 9,
2020. Members of NGL’s management team intend to host an earnings
call following this release on Monday, November 9, 2020 at 4:00 pm
CT to discuss its financial results. Analysts, investors, and other
interested parties may access the conference call by dialing (800)
291-4083 and providing access code 8880357. An archived audio
replay of the call will be available for 7 days beginning at 1:00
pm CT on November 10, 2020, which can be accessed by dialing (855)
859-2056 and providing access code 8880357.
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 such forward-looking statements
are reasonable, NGL cannot assure they 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, a Delaware limited partnership is a
diversified midstream energy company that transports, stores,
markets and provides other logistics services for crude oil,
natural gas liquids and other products and transports, treats and
disposes of produced water generated as part of the oil and natural
gas production process. For further information, visit the
Partnership’s website at www.nglenergypartners.com.
This release is a qualified notice under Treasury Regulation
Section 1.1446-4(b). Brokers and nominees should treat 100% of NGL
Energy Partner LP’s distributions to foreign investors as being
attributable to income that is effectively connected with a United
States trade or business. Therefore, distributions to foreign
investors are subject to federal income tax withholding at the
highest applicable effective tax rate.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201027005432/en/
NGL Energy Partners LP Trey Karlovich, 918.481.1119 Executive
Vice President and Chief Financial Officer Trey.Karlovich@nglep.com
or Linda Bridges, 918.481.1119 Senior Vice President – Finance and
Treasurer Linda.Bridges@nglep.com
NGL Energy Partners (NYSE:NGL)
Historical Stock Chart
From Aug 2024 to Sep 2024
NGL Energy Partners (NYSE:NGL)
Historical Stock Chart
From Sep 2023 to Sep 2024