NGL reports quarterly income growth and drop in debt

Tulsa-based NGL Energy Partners LP announced its net income for the quarter that ended May 31 was $43.2 million including the $107.9 million gain on the sale of its South Pecos water disposal business. It’s also seeing a cut in company debt.

Net income for Fiscal 2019 was $339.4 million compared to a net loss of $69.6 million in Fiscal 2018.  The quarterly net income compared to $110.9 million a year earlier.

Adjusted EBITDA for the fourth quarter of fiscal 2019 was $132.2 million compared to $91.2 million a year ago. Fiscal year 2019 adjusted EBITDA was $440.4 million, up from the $408.3 million in Fiscal 2018.

“The progress made on the balance sheet in Fiscal 2019 will enable the Partnership to continue to grow through organic growth projects and accretive acquisitions, as represented by our recent announcement of the acquisition of the Mesquite water disposal system. We are excited about the coming year and expect to continue to see strong results in our Crude Oil Logistics, Water Solutions and Liquids businesses,” stated Mike Krimbill, CEO of NGL Energy Partners LP.

The company was also able to reduce its total debt, excluding working capital borrowings from $1.710 billion at March 31, 2018 to $1.264 billion this year. NGL used proceeds from its South Pecos sale to redeem all of its outstanding 5.125% Senior Notes due 2019.

 

Working capital borrowings totaled $896.0 million at March 31, 2019 compared to $969.5 million at March 31, 2018, a decrease of $73.5 million. Total liquidity (cash plus available capacity on our revolving credit facility) was approximately $469.2 million as of March 31, 2019.

Of NGL’s various segments, its Crude Oil Logistics operations generated adjusted EBITDA of $51.2 million for the quarter, up from the $31.9 million a year ago. the financial volumes on NGL’s Grand Mesa Pipeline averaged 129,000 barrels a day for the quarter, up from the 109,000 barrels a day in the same quarter of the prior year.

But the Partnership’s Refined Products and Renewables saw a drop in adjusted EBITDA. Earnings went from $25.6 million in the quarter ending March 31, 2018 to $16.4 million this March. The company blamed costs related to the blending of biodiesel with the expectation of earning biodiesel blending tax credits.

The number of barrels of refined product sold in the quarter was 56.7 million, an increase of 13.9 million over the same period a year earlier.

NGL’s Liquids segment generated adjusted EBITDA of $31.8 million compared to $15 million a year ago. The company said the increase was driven by increased volumes, margins and improved railcar utilization, which was a result of the partnership’s efforts to right size its railcar fleet and grow the business.

Click here to read entire NGL quarterly financial report.