Investor Presentation June 2020
Company Information NGL Energy Partners LP Forward Looking Statements NYSE Ticker NGL This presentation includes “forward looking statements” within the meaning of federal securities laws. All statements, other than statements of historical fact, Unit Price (1) $6.94 included in this presentation are forward looking statements, including Market Capitalization (1)(2) $1.854 billion statements regarding the Partnership’s future results of operations or ability to generate income or cash flow, make acquisitions, or make distributions to Enterprise Value (1)(2) $4.999 billion unitholders. Words such as “anticipate,” “project,” “expect,” “plan,” “goal,” “forecast,” “intend,” “could,” “believe,” “may” and similar expressions and Yield (1) 11.53% statements are intended to identify forward-looking statements. Although C.U. Outstanding 128,348,906 management believes that the expectations on which such forward-looking statements are based are reasonable, neither the Partnership nor its general partner can give assurances that such expectations will prove to be correct. Contact Information Forward looking statements rely on assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are Corporate Headquarters outside of management’s ability to control or predict. If one or more of these NGL Energy Partners LP risks or uncertainties materialize, or if underlying assumptions prove incorrect, 6120 South Yale Avenue, Suite 805 the Partnership’s actual results may vary materially from those anticipated, Tulsa, Oklahoma 74136 estimated, projected or expected. Additional information concerning these and other factors that could impact the Partnership can be found in Part I, Item 1A, “Risk Factors” of the Partnership’s Website Annual Report on Form 10-K for the year ended March 31, 2020 and in the other www.nglenergypartners.com reports it files from time to time with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on any forward-looking statements contained in this presentation, which reflect management’s opinions Investor Relations only as of the date hereof. Except as required by law, the Partnership Contact us at (918) 481-1119 undertakes no obligation to revise or publicly update any forward-looking or e-mail us at statement. InvestorInfo@nglep.com 2 (1) Market Data and Unit Count as of 6/8/2020. (NGL-PB ticker & NGL-PC for Class B & C Preferred Units) (2) Balance Sheet Data as of 3/31/2020, Market Capitalization and Enterprise Value include Preferred Equity
Business Overview Crude Logistics Water Solutions Liquids & Refined Products ▪ ▪ Transports, treats, recycles and ▪ Conducts wholesale operations for Purchases crude oil from producers disposes of produced and flowback and marketers and transports it to NGLs, refined petroleum products water generated from crude oil and refineries for resale at pipeline and biodiesel to a broad range of natural gas production. Disposes of commercial, retail and industrial injection stations, storage terminals, solids such as tank bottoms, drilling customers across the US and barge loading facilities, rail facilities, fluids and drilling muds and performs refineries, and other trade hubs Canada other ancillary services such as truck ▪ ▪ Operations are conducted through 28 Provides storage, terminaling and and frac tank washouts company-owned terminals, other transportation services through its ▪ Owns the largest integrated network third party storage and terminal owned assets facilities, common carrier pipelines of large diameter produced water ▪ Supported by certain long-term, fixed and a fleet of leased railcars pipelines, recycling facilities and disposal wells in the Delaware Basin rate contracts which include minimum ▪ Provides NGL & refined product volume commitments on our Grand ▪ terminaling and storage at Sawtooth Underpinned by long-term, fixed fee Mesa Pipeline Caverns in Utah and marine exports contracts, acreage dedications and through a facility located in minimum volume commitments Chesapeake, VA Butane Blending and Export, Water Volumes, Rig Count and Crude Oil Production and Primary Drivers: Weather and NGL Production Crude Oil Price Transportation/ Storage Demand Higher Commodity Prices, Higher Commodity Prices Lower Commodity Prices and Benefits From: Contango and Pricing and Crude Oil Production Higher Product Demand Differentials FY2020 Adjusted ~28% EBITDA from ~37% Continuing ~35% Operations Contribution %*: 3 *Excludes Corporate and Other Adjusted EBITDA of ($44.128) million
Business Strategy Build a diversified ▪ Transport crude oil from the wellhead to refiners midstream MLP ▪ Transport water from the producer to treatment for disposal, recycle, or discharge providing multiple ▪ Transport natural gas liquids from processing plants and supply hubs to end users services ▪ Operate in a safe and environmentally responsible manner by working with our employees, customers, vendors, and Operate in a safe and local communities environmentally responsible manner ▪ Protect the environment and comply with local, state, and federal environmental laws and regulations ▪ Focus on generating revenues under long-term fee-based contracts in addition to back-to-back contracts which Focus on consistent minimize direct commodity price exposure annual cash flows from ▪ Continue to increase cash flows that are supported by certain fee-based, multi-year contracts, some of which include operations acreage dedications from producers and/or volume commitments ▪ Invest in existing businesses to capitalize on accretive, organic growth opportunities Achieve growth by ▪ generating attractive Utilize currently operational capacity to increase cash flows with minimal incremental capital investment rates of return ▪ Continue to pursue strategic transactions and ventures that complement and enhance our existing footprint Prudently manage ▪ Maintain sufficient liquidity and credit metrics to manage existing and future capital requirements and to take balance sheet to provide advantage of market opportunities maximum financial ▪ Continue to evaluate the capital markets to opportunistically pursue financing transactions to optimize capital structure flexibility 4
Balance Sheet Management Review NGL’s Transformation & Simplification Segment EBITDA Breakdown as of March 31, 2018* Segment EBITDA Breakdown as of March 31, 2020* Major Divestitures Major Acquisitions Liquids & Refined ▪ Retail Propane ▪ Liquids & Water Solutions 16% 29% Refined 31% 34% Water ➢ Mesquite (Delaware Basin) ▪ Crude Logistics Solutions ➢ Hillstone (Delaware Basin) Water Solutions ➢ Glass Mountain Pipeline (OK) 26% Crude Logistics ▪ Liquids & Refined Products ▪ Water Solutions Crude Logistics 27% ➢ Bakken (ND) ➢ DCP Terminals Discontinued ➢ South Pecos (TX) Ops 37% ▪ Refined Products ➢ TransMontaigne (SE) 44% Increase ➢ Mid-Con Adjusted EBITDA ~$408 Adjusted EBITDA from Continuing Ops.~$589 ➢ Gas Blending Asset Map Change over Period 5 * Reflects % of Adjusted EBITDA from Continuing Operations and excludes Adjusted EBITDA from Corporate and Other
Water Solutions Segment Overview 6
Water Solutions Platform Our Water Solutions segment transports, treats, recycles and disposes of produced and flowback water generated from crude oil and natural gas production, disposes of solids such as tank bottoms, drilling fluids and drilling muds and performs other ancillary services, such as truck and frac tank washouts. Additionally, this segment sells the hydrocarbons recovered from water processing and provides sourcewater services. Water Disposal Recycling & Sourcewater Solids Solutions Water Pipelines ▪ ▪ ▪ ▪ 119 SWD facilities & 214 injection Existing recycle facility in Pinedale Solids disposal facilities with Water pipelines owned by NGL and 3 rd parties connected Anticline wells approximately 60,000 BPD of total to NGL facilities capacity in Texas ▪ 11.6 million barrels per year of ▪ Primary operating areas: ▪ freshwater rights in New Mexico 2 solids facilities in Colorado ▪ Over 600 miles of large- ➢ Solids Processing Facility (C6) ➢ Delaware (TX & NM) ▪ 23 million barrels per year of diameter water pipelines in- ➢ Solids Slurry Injection (C9) ➢ Eagle Ford (TX) freshwater capacity in Texas service ➢ DJ (CO) ▪ Provides producers with in-field ▪ Recycle capabilities across the ➢ Midland (TX) disposal alternative for Gels, High ▪ Northern Delaware under Additional water pipelines ➢ Pinedale Anticline (WY) Solids Content Water, Water and development under development Oil-Based Mud, and Tank Bottoms ▪ 24x7 operations at most locations ▪ 2 landfill facilities in permitting stages in New Mexico NGL saltwater disposal facility Water Solutions areas of operation 7
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