It wasn’t just the fourth quarter but the past full year that NGL Energy Partners LP of Tulsa had lower earnings.
The company reported a loss from continuing operations for the quarter ended March 31, 2021 of $229.2 million including a $63.1 million loss related to the early repayment of the partnership’s term loan facility. It also had a $40 million consent payment to the holders of the partnership’s Class D preferred units and a non-cash impairment charge of $84.3 million for certain inactive or underutilized saltwater disposal facilities
NGL’s adjusted EBITDA from continuing operations for the fourth quarter were $94.3 million, down from the $161.8 million reported a year earlier. The company’s fiscal year 2021 adjusted EBITDA was $448.3 million, below the $589.5 million in the prior year.
The company also announced that as a result of the lower earnings in both the fourth quarter and the full year, it had suspended all common unit and preferred unit distributions until the board of directors felt it was “prudent to resume distributions.”
As a result of a private offering of more than $2 billion of 7.5% senior secured notes due 2026 and a new $500 million asset-based revolving credit facility, NGL significantly extended its debt maturities and also used proceeds to repay all outstanding amounts under the partnership’s previous $1.915 billion revolving credit facility due in October 2021 and its $250.0 million term loan facility and terminate those agreements.
“The partnership is well positioned going into its Fiscal 2022, as crude prices, producer volumes and demand for commodities have all increased following a challenging Fiscal 2021,” stated Mike Krimbill , NGL’s CEO. “We are excited about rising and stabilizing crude oil prices and the return of production growth in the DJ Basin and expect to see increased producer demand for capacity on our Grand Mesa Pipeline as well.”
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