Tulsa based NGL Partners LP has named a new member to the board of directors of its general partner and unveiled its quarterly revenue at the same time.
He is L. John Schaufele IV who replaces Patrick G. Wade as a Director. His appointment is to the board of directors of the general partner, NGL Energy Holdings LLC and was effective Feb. 5, 2018.
Schaufele has worked at The Energy & Minerals Group (EMG) since 2011. EMG is a private investment firm with $16 billion of Regulatory Assets Under Management that focuses on investing across various facets of the global natural resource industry including the upstream and midstream segments of the energy complex.
He previously worked at a middle-market private equity investment firm and JPMorgan. Schaufele currently serves as a director of Ascent Resources, LLC, Heritage NonOp Holdings, LLC, Heritage Minerals Holdings, LLC, White Star Petroleum Holdings, LLC, and Utica Minerals Development, LLC.
The company said Schaufele brings extensive financial and industry experience to the board with 14 years of experience in the energy sector.
The announcement came on the same day that the quarterly earnings were revealed by the company. Net income for the quarter totaled $56.8 million as of Dec. 31, 2017. It included the gain on the company’s sale of its 50% interest in glass Mountain Pipeline LLC which totaled $108.6 million. The net income compared to $1.3 million for the quarter that ended Dec. 31, 2016.
NGL used proceeds from the Glass Mountain sale to pay down on debt. The company also announced a definitive agreement to sell a portion of the Partnership’s Retail Propane segment for $200 million. Closing should be by March 31, 2018. Once again, proceeds will be used in paying down company debt.
“We continue to see improvements in our Crude Oil Logistics, Water and Propane businesses, evidenced by strong results from these businesses in the third quarter and tailwinds heading into our fourth quarter and beyond,” stated CEO Mike Krimbill. “We announced two significant asset sales with expected proceeds of over $500 million and a blended multiple of over 12 times EBITDA. We closed the Glass Mountain sale prior to December 31, 2017, and used those proceeds to reduce senior secured and unsecured debt, and we expect to further de-lever upon the closing of the Retail Propane transaction at the end of March. Our challenges in the Refined Products business are being addressed through changes in strategies, contracting and personnel. There are market factors that continue to impact that portion of our business, many of which are outside of our control; however, we will continue to actively manage this business to achieve the improved results expected by our stakeholders and our management team.”