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Released February 11, 2015 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Full-service midstream provider NGL Energy Partners LP (NYSE:NGL) (Tulsa, Oklahoma) saw strong revenues more than offset by acquisition and disposal costs, among other expenses, in the third quarter of the company's 2015 fiscal year. Net losses were reported to total $5.27 million during the quarter, compared with a net gain of $24.05 million in the third quarter of fiscal 2014.
NGL Energy executives said that results were much more representative of the quarterly performance when using the "adjusted EBITDA" method, which shows a $136.56 million gain for the quarter, compared with a $79.88 million gain in third-quarter 2014. These numbers exclude $7.6 million in compensation costs related to the acquisitions of the Gavilon and TransMontaigne Pipeline systems last year; $700,000 in advisory and legal costs related to acquisitions; net income and losses attributable to the parent equity; income tax provisions and benefits; interest expenses; depreciation; amortization; net unrealized gains and losses on derivatives; cost or market adjustments; losses on dispositions of assets; equity-based compensation expenses.
Industrial Info is tracking $1.27 billion in active projects involving NGL Energy, including the $75 million construction of a crude-oil transfer terminal in Houma, Louisiana. The 200,000-barrel-per-day (BBL/d) loading/unloading terminal is designed to receive crude via barges and tank trucks, then allow it to be loaded onto barges for distribution. It will include three 113,000-BBL internal floating roof steel tanks, two truck-offloading pads, and systems to accommodate two 30,000-barrel oil barges. The project is set to kick off in the second quarter.
Total revenues stood at $4.55 billion, compared with $2.74 billion in third-quarter 2014. Among the factors that ate away at the company's bottom line was a $29.9 million loss on the sale of an NGL terminal.
NGL Energy Partners also began construction on the Grand Mesa Pipeline, a $1.1 billion-plus joint venture between NGL and Rimrock Midstream LLC (Plano, Texas) that will transport crude oil from Weld County, Colorado, to NGL's terminal in Cushing, Oklahoma. The 20-inch pipeline completed an open season and received ship-or-pay volume commitments from multiple shippers. Pump stations are to be built in Kersey, Colorado; Lucerne, Colorado; Sharon Springs, Kansas; and Wakita, Oklahoma.
Capital expenditures (capex) were reported to total $52.58 million during the third quarter of fiscal 2015, compared with $40.55 million in capital expenditures in the same period last year.
"At the beginning of this fiscal year, we indicated our expectation to incur approximately $30 million of maintenance capex" said Atanas Atanasov, the executive vice president, chief financial officer and treasurer of NGL Energy, in a conference call. "Year-to-date, NGL Energy has spent $25.7 million, excluding $2.8 million of TransMontaigne Partners maintenance capex, and we still feel comfortable with our estimate of $30 million for NGL Energy."
He added: "We also indicated our plans to spend around $500 million of growth capex in acquisitions. Year-to-date, we have spent approximately $502 million, which excludes $3 million of TransMontaigne Partners growth capex."
Executives said that they expect NGL Energy's adjusted EBITDA for the full fiscal year ending March 31 to total between $410 million and $425 million.
Along with its quarterly results, NGL Energy Partners announced that it has agreed to acquire Magnum NGLs LLC from Magnum Development LLC, a portfolio company of Haddington Ventures LLC, for about $280 million. Magnum owns and operates an NGL storage facility southwest of Salt Lake City, Utah, that holds a liquids salt dome, multiple salt caverns and a potential capacity of more than 10 million barrels. Two solution-mined salt caverns with a capacity of between 1 million and 2 million barrels of propane and butane already are online. The facility also will give NGL Energy Partners better rail and truck access to Western U.S. markets.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
NGL Energy executives said that results were much more representative of the quarterly performance when using the "adjusted EBITDA" method, which shows a $136.56 million gain for the quarter, compared with a $79.88 million gain in third-quarter 2014. These numbers exclude $7.6 million in compensation costs related to the acquisitions of the Gavilon and TransMontaigne Pipeline systems last year; $700,000 in advisory and legal costs related to acquisitions; net income and losses attributable to the parent equity; income tax provisions and benefits; interest expenses; depreciation; amortization; net unrealized gains and losses on derivatives; cost or market adjustments; losses on dispositions of assets; equity-based compensation expenses.
Industrial Info is tracking $1.27 billion in active projects involving NGL Energy, including the $75 million construction of a crude-oil transfer terminal in Houma, Louisiana. The 200,000-barrel-per-day (BBL/d) loading/unloading terminal is designed to receive crude via barges and tank trucks, then allow it to be loaded onto barges for distribution. It will include three 113,000-BBL internal floating roof steel tanks, two truck-offloading pads, and systems to accommodate two 30,000-barrel oil barges. The project is set to kick off in the second quarter.
Total revenues stood at $4.55 billion, compared with $2.74 billion in third-quarter 2014. Among the factors that ate away at the company's bottom line was a $29.9 million loss on the sale of an NGL terminal.
NGL Energy Partners also began construction on the Grand Mesa Pipeline, a $1.1 billion-plus joint venture between NGL and Rimrock Midstream LLC (Plano, Texas) that will transport crude oil from Weld County, Colorado, to NGL's terminal in Cushing, Oklahoma. The 20-inch pipeline completed an open season and received ship-or-pay volume commitments from multiple shippers. Pump stations are to be built in Kersey, Colorado; Lucerne, Colorado; Sharon Springs, Kansas; and Wakita, Oklahoma.
Capital expenditures (capex) were reported to total $52.58 million during the third quarter of fiscal 2015, compared with $40.55 million in capital expenditures in the same period last year.
"At the beginning of this fiscal year, we indicated our expectation to incur approximately $30 million of maintenance capex" said Atanas Atanasov, the executive vice president, chief financial officer and treasurer of NGL Energy, in a conference call. "Year-to-date, NGL Energy has spent $25.7 million, excluding $2.8 million of TransMontaigne Partners maintenance capex, and we still feel comfortable with our estimate of $30 million for NGL Energy."
He added: "We also indicated our plans to spend around $500 million of growth capex in acquisitions. Year-to-date, we have spent approximately $502 million, which excludes $3 million of TransMontaigne Partners growth capex."
Executives said that they expect NGL Energy's adjusted EBITDA for the full fiscal year ending March 31 to total between $410 million and $425 million.
Along with its quarterly results, NGL Energy Partners announced that it has agreed to acquire Magnum NGLs LLC from Magnum Development LLC, a portfolio company of Haddington Ventures LLC, for about $280 million. Magnum owns and operates an NGL storage facility southwest of Salt Lake City, Utah, that holds a liquids salt dome, multiple salt caverns and a potential capacity of more than 10 million barrels. Two solution-mined salt caverns with a capacity of between 1 million and 2 million barrels of propane and butane already are online. The facility also will give NGL Energy Partners better rail and truck access to Western U.S. markets.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
