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Released August 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) reported a solid gain in adjusted earnings in the first quarter of the company's 2016 fiscal year. Although several one-time and exceptional expenses put regularly reported earnings in the red, the company remained optimistic about several of its major projects, including the highly anticipated Grand Mesa Pipeline and a recent joint-venture agreement in the Powder River Basin. Industrial Info is tracking $1.18 billion in active projects involving NGL Energy Partners.
Among the NGL Energy projects tracked by Industrial Info is one of the largest in the U.S. Midwest region: the Grand Mesa Pipeline project. Along with Rimrock Midstream (Plano, Texas), NGL Energy is building the 550-mile pipeline from its origin in Weld County, Colorado, to NGL Energy's crude-oil terminal in Cushing, Oklahoma, with a capacity of 130,000 barrels per day (BBL/d). Industrial Info is tracking the construction of the pipeline through its difference sections, which are based in Lucerne, Colorado; Sharon Springs, Kansas; and Wakita, Oklahoma. These are valued at $320 million, $450 million and $150 million, respectively.
Cuts Deal with Meritage for Wyoming Venture
During the quarter, NGL Energy announced that it is forming a joint venture with Meritage Midstream Services II LLC (Denver, Colorado) to develop crude oil-gathering and water-services infrastructure to serve oil & gas producers in Wyoming's Powder River Basin. The joint venture, which will work from Meritage's dedicated acreage in the basin, will build crude-oil and wastewater-gathering pipelines; pipeline injection terminals; wastewater and solid-waste disposal facilities; and fresh water supply systems.
Industrial Info is tracking $405 million in active projects involving Meritage's work in Wyoming's neighboring Niobara Shale, particularly the $180 million, 196-mile Thunder Creek NGL Pipeline Project. The pipeline is designed to transport up to 40,000 BBL/d of Niobrara NGL from Thunder Creek Gas Services' planned Fifty Buttes Gas plant and other local processors, then connect with the Overland Pass Pipeline in Laramie County, Wyoming, and later to the Front Range Pipeline in Weld County, Colorado. Pump stations, each valued at $45 million, are to be constructed in at least five Wyoming cities: Gilette, Douglas, Cheyenne, Chugwater and Glendo.
"This joint venture will provide a complete menu of crude oil and water services to our customers in the Powder River Basin, and allow us to offer cost-effective, one-stop shopping for natural gas, NGLs, crude oil, waste water, and frac water," said Steve Huckaby, the chief executive officer of Meritage, in a press release at the time of the announcement. "By bundling services in and around our current footprint and making additional expansions to our ability to offer downstream value, Meritage is well-positioned as the region's premier, full-service midstream provider."
Net losses by NGL Energy were reported to be $57.76 million, compared with losses of $49.37 million in fiscal first-quarter 2015. However, NGL Energy executives cited adjusted earnings of $88.95 million, compared with $39.31 million in the same period last year, when excluding losses from interest expenses, income taxes, depreciation and amortization, as well as exceptional expenses such as net unrealized losses on derivatives; inventory valuations; and, especially equity-based compensation expenses, which alone accounted for almost one-third of the losses.
Revenues stood at $3.54 billion, down 3% from the same period last year.
"We are very pleased with NGL's performance, delivering another solid quarter of improved adjusted EBITDA," said Mike Krimbill, the chief executive officer of NGL Energy Partners, in a quarterly press release. "We are very excited about our slate of internal growth projects, which will allow us to continue to deliver on our commitment to growth. In addition, we are pursuing certain acquisitions and joint venture opportunities."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and ten 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.
Among the NGL Energy projects tracked by Industrial Info is one of the largest in the U.S. Midwest region: the Grand Mesa Pipeline project. Along with Rimrock Midstream (Plano, Texas), NGL Energy is building the 550-mile pipeline from its origin in Weld County, Colorado, to NGL Energy's crude-oil terminal in Cushing, Oklahoma, with a capacity of 130,000 barrels per day (BBL/d). Industrial Info is tracking the construction of the pipeline through its difference sections, which are based in Lucerne, Colorado; Sharon Springs, Kansas; and Wakita, Oklahoma. These are valued at $320 million, $450 million and $150 million, respectively.
Cuts Deal with Meritage for Wyoming Venture
During the quarter, NGL Energy announced that it is forming a joint venture with Meritage Midstream Services II LLC (Denver, Colorado) to develop crude oil-gathering and water-services infrastructure to serve oil & gas producers in Wyoming's Powder River Basin. The joint venture, which will work from Meritage's dedicated acreage in the basin, will build crude-oil and wastewater-gathering pipelines; pipeline injection terminals; wastewater and solid-waste disposal facilities; and fresh water supply systems.
Industrial Info is tracking $405 million in active projects involving Meritage's work in Wyoming's neighboring Niobara Shale, particularly the $180 million, 196-mile Thunder Creek NGL Pipeline Project. The pipeline is designed to transport up to 40,000 BBL/d of Niobrara NGL from Thunder Creek Gas Services' planned Fifty Buttes Gas plant and other local processors, then connect with the Overland Pass Pipeline in Laramie County, Wyoming, and later to the Front Range Pipeline in Weld County, Colorado. Pump stations, each valued at $45 million, are to be constructed in at least five Wyoming cities: Gilette, Douglas, Cheyenne, Chugwater and Glendo.
"This joint venture will provide a complete menu of crude oil and water services to our customers in the Powder River Basin, and allow us to offer cost-effective, one-stop shopping for natural gas, NGLs, crude oil, waste water, and frac water," said Steve Huckaby, the chief executive officer of Meritage, in a press release at the time of the announcement. "By bundling services in and around our current footprint and making additional expansions to our ability to offer downstream value, Meritage is well-positioned as the region's premier, full-service midstream provider."
Net losses by NGL Energy were reported to be $57.76 million, compared with losses of $49.37 million in fiscal first-quarter 2015. However, NGL Energy executives cited adjusted earnings of $88.95 million, compared with $39.31 million in the same period last year, when excluding losses from interest expenses, income taxes, depreciation and amortization, as well as exceptional expenses such as net unrealized losses on derivatives; inventory valuations; and, especially equity-based compensation expenses, which alone accounted for almost one-third of the losses.
Revenues stood at $3.54 billion, down 3% from the same period last year.
"We are very pleased with NGL's performance, delivering another solid quarter of improved adjusted EBITDA," said Mike Krimbill, the chief executive officer of NGL Energy Partners, in a quarterly press release. "We are very excited about our slate of internal growth projects, which will allow us to continue to deliver on our commitment to growth. In addition, we are pursuing certain acquisitions and joint venture opportunities."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and ten 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.
