NGL Energy Partners LP Announces Third Quarter Results and Filing of Form 10-Q

  NGL Energy Partners LP Announces Third Quarter Results and Filing of Form
  10-Q

Business Wire

TULSA, Okla. -- February 15, 2013

NGL Energy Partners LP (NYSE:NGL) today reported net income of $40.5 million
and Adjusted EBITDA of $73.2 million for the three months ended December 31,
2012. Net income per limited partner common unit for the quarter was $0.75.
General and administrative expenses during the quarter ended December 31, 2012
included $0.8 million of costs related to acquisitions.

NGL’s Chief Executive Officer, H. Michael Krimbill, said, “We are pleased to
announce Adjusted EBITDA results exceeding prior guidance for the quarter. We
completed a number of acquisitions during the quarter that further enhanced
our ability to provide customers with a full range of services from wellhead
to the end market. Going forward our focus will also include internal growth
projects, many of which have been initiated in fiscal 2013 and will contribute
to results in fiscal 2014.”

During the three months ended December 31, 2012, NGL completed several
acquisitions, including:

  *The November 2012 acquisition of certain entities that conduct crude oil
    purchasing and logistics operations in Texas and New Mexico;
  *The December 2012 acquisition of a barge transportation business;
  *The acquisition of two retail propane businesses; and
  *The acquisition of three water services and crude oil logistics
    businesses.

For the nine months ended December 31, 2012, NGL reported net income of $25.8
million and Adjusted EBITDA of $93.1 million. Net income per limited partner
common unit for the nine months ended December 31, 2012 was $0.53. General and
administrative expenses during the nine months ended December 31, 2012
included $5.2 million of costs related to acquisitions.

On January 24, 2013, NGL announced that the Board of Directors of its general
partner increased the quarterly cash distribution for the third fiscal quarter
ended December 31, 2012, by $.0125 to $0.4625 per outstanding limited partner
unit from $0.45 per unit, resulting in an annualized cash distribution of
$1.85 per unit. This distribution was paid on February 14, 2013, to
unitholders of record entitled to receive the distribution at the close of
business on February 4, 2013. This is the fifth consecutive quarter NGL has
increased its cash distribution since its initial public offering in May 2011.

NGL also announced that it has filed its quarterly report on Form 10-Q for its
fiscal quarter ended December 31, 2012 with the Securities and Exchange
Commission. NGL has posted a copy of the Form 10-Q on its website at
www.nglenergypartners.com.

A conference call to discuss NGL's results of operations is scheduled for
10:00 a.m. Eastern Time (9:00 a.m. Central Time) on February 15, 2013.
Analysts, investors, and other interested parties may access the conference
call by dialing (866) 788-0545 and providing access code 55364675. An audio
replay of the conference call will be available for 7 days beginning at 12:00
p.m. Eastern Time on February 15, 2013 and can be accessed by dialing (888)
286-8010 and providing access code 86475629.

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. 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
Unaudited Condensed Consolidated Balance Sheets
As of December 31, 2012 and March 31, 2012
(U.S. Dollars in Thousands, except unit amounts)

                                                 December 31,    March 31,
                                                   2012              2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                          $ 23,903          $ 7,832
Accounts receivable - trade, net of allowance
for doubtful accounts of $1,962 and $818,            595,274           84,004
respectively
Receivables from affiliates                          1,334             2,282
Inventories                                          234,025           94,504
Prepaid expenses and other current assets           58,004          10,002
Total current assets                                 912,540           198,624
                                                                     
PROPERTY, PLANT AND EQUIPMENT, net of
accumulated depreciation of $34,072 and              520,084           231,394
$12,843, respectively
GOODWILL                                             510,072           167,245
INTANGIBLE ASSETS, net of accumulated
amortization of $29,807 and $8,174,                  487,206           149,490
respectively
OTHER NONCURRENT ASSETS                             7,567           2,766
Total assets                                       $ 2,437,469      $ 749,519
                                                                     
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Trade accounts payable                             $ 579,371         $ 81,369
Accrued expenses and other payables                  74,064            14,143
Advance payments received from customers             59,237            20,293
Payables to affiliates                               6,527             9,462
Current maturities of long-term debt                8,635           19,534
Total current liabilities                            727,834           144,801
                                                                     
LONG-TERM DEBT, net of current maturities            827,570           199,177
OTHER NONCURRENT LIABILITIES                         1,428             212
                                                                     
COMMITMENTS AND CONTINGENCIES
                                                                     
PARTNERS' EQUITY:
General Partner — 0.1% interest; 53,174 and
29,245 notional units outstanding,                   (50,752   )       442
respectively
Limited Partners — 99.9% interest —
Common units — 47,201,831 and 23,296,253 units       912,028           384,604
outstanding, respectively
Subordinated units — 5,919,346 units
outstanding at December 31, 2012 and March 31,       13,556            19,824
2012
Accumulated other comprehensive income —
Foreign currency translation                         32                31
Noncontrolling interests                            5,773           428
Total partners' equity                              880,637         405,329
Total liabilities and partners' equity             $ 2,437,469      $ 749,519
                                                   


NGL ENERGY PARTNERS LP
Unaudited Condensed Consolidated Statements of Operations
Three Months and Nine Months Ended December 31, 2012 and 2011
(U.S. Dollars in Thousands, except unit and per unit amounts)

                 Three Months Ended                  Nine Months Ended
                   December 31,                          December 31,
                    2012           2011             2012           2011       
REVENUES:
Retail propane     $ 127,905          $ 62,701           $ 244,116          $ 94,787
Natural gas
liquids              508,131            407,948            1,050,116          776,757
logistics
Crude oil            677,985            —                  1,462,523          —
logistics
Water services       22,806             —                  40,557             —
Other               1,381            —                2,842            —          
Total Revenues      1,338,208        470,649          2,800,154        871,544    
                                                                            
COST OF SALES:
Retail propane       77,449             40,502             144,556            61,825
Natural gas
liquids              470,621            399,288            982,949            765,400
logistics
Crude oil            654,976            —                  1,425,546          —
logistics
Water services      1,499            —                4,169            —          
Total Cost of       1,204,545        439,790          2,557,220        827,225    
Sales
                                                                            
OPERATING
COSTS AND
EXPENSES:
Operating            50,518             12,653             113,287            27,045
General and          14,175             4,163              34,578             10,363
administrative
Depreciation
and                 18,747           5,402            41,335           8,480      
amortization
Operating            50,223             8,641              53,734             (1,569     )
Income (Loss)
                                                                            
OTHER INCOME
(EXPENSE):
Interest             241                197                870                422
income
Interest             (9,762     )       (2,676     )       (22,254    )       (4,989     )
expense
Loss on early
extinguishment       —                  —                  (5,769     )       —
of debt
Other, net          20               86               49               215        
Income (Loss)
Before Income        40,722             6,248              26,630             (5,921     )
Taxes
                                                                            
INCOME TAX          (245       )      (158       )      (781       )      (158       )
PROVISION
                                                                            
Net Income           40,477             6,090              25,849             (6,079     )
(Loss)
                                                                            
Net (Income)
Loss Allocated       (942       )       (6         )       (1,731     )       6
to General
Partner
                                                                            
Net (Income)
Loss
Attributable        (301       )      —                (250       )      —          
to
Noncontrolling
Interests
                                                                            
Net Income
(Loss)
Attributable
to Parent          $ 39,234          $ 6,084           $ 23,868          $ (6,073     )
Equity
Allocated to
Limited
Partners
                                                                            
Basic and
Diluted
Earnings           $ 0.75            $ 0.24            $ 0.53            $ (0.41      )
(Loss) per
Common Unit
                                                                            
Basic and
Diluted
Earnings           $ 0.75            $ 0.28            $ 0.51            $ (0.20      )
(Loss) per
Subordinated
Unit
                                                                            
Basic and
Diluted
Weighted
average units
outstanding:
Common              46,364,381       18,699,590       39,288,012       12,491,836 
Subordinated        5,919,346        5,919,346        5,919,346        4,929,201  


                               OPERATIONAL DATA

The following table summarizes the volume of product sold and wastewater
processed for the three months and nine months ended December 31, 2012 and
2011. Gallons sold by our natural gas liquids logistics segment shown in the
table below include sales to our retail segment.


                                 Three Months Ended    Nine Months Ended
                                   December 31,            December 31,
Segment                            2012      2011        2012      2011
                                   (in thousands)
Retail propane
Propane gallons sold               42,122      24,694      81,449      37,658
Distillate gallons sold            8,818       —           15,091      —
                                                                       
Natural gas liquids logistics
Propane gallons sold               275,598     237,490     532,353     449,656
Other natural gas liquids          205,498     50,456      457,248     88,556
gallons sold
                                                                       
Crude oil logistics
Crude oil barrels sold             7,461       —           15,922      —
                                                                       
Water services
Barrels of water processed         9,818       —           16,593      —


                        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:


                           Three Months Ended       Nine Months Ended
                            December 31,              December 31,
                             2012      2011       2012       2011   
                            (in thousands)
EBITDA:
Net income (loss)
attributable to parent      $ 40,176     $ 6,090      $ 25,599      $ (6,079 )
equity
Provision for income          245          158          781           158
taxes
Interest expense              9,762        2,676        22,254        4,989
Loss on early                 —            —            5,769         —
extinguishment of debt
Depreciation and             20,494     5,602      44,607      9,080  
amortization
EBITDA                      $ 70,677     $ 14,526     $ 99,010      $ 8,148
Unrealized (gain) loss on     159          (938   )     (11,246 )     (76    )
derivative contracts
Loss (gain) on sale of        (11    )     (38    )     (34     )     (84    )
assets
Share-based compensation     2,365      —          5,322       —      
expense
Adjusted EBITDA             $ 73,190    $ 13,550    $ 93,052     $ 7,988  


Contact:

NGL Energy Partners LP
Atanas H. Atanasov, 918-481-1119
Senior Vice President Finance & Treasurer
atanas.atanasov@nglep.com