NGL Energy Partners Announces Quarterly Cash Distribution and Provides Distribution Guidance
NGL Energy Partners LP (NYSE: NGL) announced today that the Board of
Directors of its general partner has declared a quarterly distribution
of $0.39 per unit, or $1.56 per unit on an annualized basis, for the
quarter ended December 31, 2016. This cash distribution is payable on
February 14, 2017 to common unitholders of record at the close of
business on February 3, 2017.
“This is the fourth and final quarter of the temporary distribution
reduction we announced last April,” stated Mike Krimbill, CEO of NGL.
“Looking forward to the next four quarters and beyond, our management
team expects to recommend a distribution of $1.76 per unit annualized
for the quarter ending March 31, 2017 and to grow that distribution to
$2.00 per unit annualized during the year. This would be 28% growth in
distributions on an annualized basis for next year. Additionally, based
upon current market conditions and commodity prices, we would expect to
grow our distribution approximately 10% per year for the three years
after fiscal 2018, while continuing to maintain our target distribution
coverage of 1.3-1.5 times distributable cash flow. At this level, NGL
would generate significant excess cash flow that would be re-invested
into our business and used to reduce indebtedness. We have made
tremendous progress on our projects and our balance sheet and with the
successful start-up of the Grand Mesa pipeline and the various other
projects recently completed or in progress, we see significant growth in
our cash flows with minimal future capital investment required.”
Additionally, the Board of Directors declared a distribution for the
quarter ended December 31, 2016 to be paid to the holders of the Class A
Preferred Units according to the terms outlined in the Partnership
Agreement. The Class A Preferred distribution will also be made on
February 14, 2017.
Forward-Looking Statements
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 such forward-looking statements are reasonable, NGL cannot
assure they 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 five primary
businesses: water solutions, crude oil logistics, NGL logistics, refined
products/renewables and retail propane. For further information, visit
the Partnership’s website at www.nglenergypartners.com.
This release is a qualified notice under Treasury Regulation Section
1.1446-4(b). Brokers and nominees should treat 100% of NGL Energy
Partner LP’s distributions to foreign investors as being attributable to
income that is effectively connected with a United States trade or
business. Therefore, distributions to foreign investors are
subject to federal income tax withholding at the highest applicable
effective tax rate.
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Copyright Business Wire 2017
Source: Business Wire
(January 19, 2017 - 5:11 PM EST)
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