Tulsa-based NGL Energy Partners LP reported a drop in income from its operations for the quarter ending Dec. 31, 2019. Earnings were $49.1 million compared to the $97.2 million in earnings a year earlier. But the company also managed to turn around losses reported in 2018.
The company stated that its income from continuing operations for the nine months that ended in December was $42.5 million, an improvement after the firm had a $137.3 million loss for the same time period ending 2018.
“Our transformation to a simpler business model with improved predictability of cash flows and reduced volatility in earnings is substantially complete,” stated Mike Krimbill, the Partnership’s CEO.
Adjusted earnings for the quarter were $200.5 million, up from the $131.3 million reported in the third quarter of fiscal 2019.
During the past year, NGL exited part of its Refined Products and Renewables segment, a move that allowed the company to reduce working capital debt. The company also intends to divest its refined products marketing business in the mid-continent region and its gas blending business in the southeastern U.S.
The Partnership completed the sale of certain Mid-Con assets on January 3, 2020. The Partnership determined that these businesses were no longer core to the Partnership’s strategy. The operations of these businesses have been classified as discontinued operations as the exiting of these businesses, along with the sale of TransMontaigne Product Services, LLC on September 30, 2019, represent a strategic shift in the Partnership’s operations and will have a significant effect on its operations and financial results going forward. Certain assets and liabilities have also been classified as held for sale.
Krimbill called it a “tremendous quarter” from an operating standpoint as the company transported nearly 1.6 million barrels a day of produced water and 134,000 barrels a day of crude oil on the Grand Mesa pipeline.
“Our Liquids segment had a particularly strong quarter as we optimized our expanded asset position, which includes 27 terminals and approximately 5,000 rail cars,” he added.
In the past year, NGL acquired Hillstone Environmental Partners, LLC for $642.5 million, a purchase that included 19 more saltwater disposal wells and a network of produced water pipelines with nearly 680,000 barrels a day of transportation capacity.
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Source: Business Wire