January 19, 2017 - 5:11 PM EST
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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.

NGL Energy Partners LP
Trey Karlovich, 918-481-1119
Executive Vice President and Chief Financial Officer
[email protected]
Linda Bridges, 918-481-1119
Vice President – Finance and Treasurer
[email protected]

Source: Business Wire (January 19, 2017 - 5:11 PM EST)

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