investor presentation april 2018 -...

Investor Presentation April 2018

This presentation includes “forward looking statements” within the meaning of

federal securities laws. All statements, other than statements of historical fact,

included in this presentation are forward looking statements, including

statements regarding the Partnership’s future results of operations or ability to

generate income or cash flow, make acquisitions, or make distributions to

unitholders. Words such as “anticipate,” “project,” “expect,” “plan,” “goal,”

“forecast,” “intend,” “could,” “believe,” “may” and similar expressions and

statements are intended to identify forward-looking statements. Although

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.

Forward looking statements rely on assumptions concerning future events and

are subject to a number of uncertainties, factors and risks, many of which are

outside of management’s ability to control or predict. If one or more of these

risks or uncertainties materialize, or if underlying assumptions prove incorrect,

the Partnership’s actual results may vary materially from those anticipated,

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

Annual Report on Form 10-K for the year ended March 31, 2017 and in the other

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

only as of the date hereof. Except as required by law, the Partnership

undertakes no obligation to revise or publicly update any forward-looking

statement.

2

Company Information

Contact Information

Forward Looking Statements NGL Energy Partners LP

Corporate Headquarters

NGL Energy Partners LP

6120 South Yale Avenue, Suite 805

Tulsa, Oklahoma 74136

Website

www.nglenergypartners.com

Investor Relations

Contact us at (918) 481-1119

or e-mail us at

[email protected]

(1) Market Data and Unit Count as of 4/6/2018. (NGL-B ticker for Class B Preferred Units)

(2) Balance Sheet Data as of 12/31/2017, Market Capitalization and Enterprise Value include Preferred Equity

NYSE Ticker NGL

Unit Price (1) 11.10 $

Market Capitalization (1)(2) 1.78 $ Billion

Enterprise Value (1)(2) 4.84 $ Billion

Yield (1) 14.05%

http://www.nglenergypartners.com/

mailto:[email protected]

3

NGL Energy Partners LP

Overview

Segment Contribution

Crude

Logistics

Business Overview

4

Retail

Propane

Refined Products/

Renewables

Purchases and transports crude oil for resale to a pipeline injection point, storage terminal, barge loading facility, rail facility, refinery or trade hub

Provides transportation, terminaling, and storage of crude oil and condensate to third parties for a fixed-fee per barrel

Long term, take-or-pay contracts on Grand Mesa Pipeline

Provides services for the treatment, processing, and disposal of wastewater, and solids generated from oil and natural gas production

Revenue streams from the disposal of wastewater and solids, transportation of water through pipelines, truck and frac-tank washouts, and recovered hydrocarbons

Transports, stores, and markets NGLs to and from refiners, gas processors, propane wholesalers, propane retailers, proprietary terminals, petrochemical plants, diluent markets and other merchant users of NGLs

Large provider of butane to refiners for gasoline blending

Utilizes underground storage to take advantage of seasonal demand

Sells propane and distillates to end-users consisting of residential, agricultural, commercial and industrial customers

Seasonal business with majority of retail propane volume sold during the peak heating season from October through March

Focus on residential customers, high tank ownership and customer retention

Purchase refined petroleum products primarily in the Gulf Coast, Southeast, and Midwest regions of the United States and schedule them for delivery primarily on the Colonial, Plantation, Magellan and NuStar pipelines

Sell our products to commercial and industrial end users, independent retailers, distributors, marketers, government entities, and other wholesalers

Water

Solutions

Liquids

Business Diversity

5

Crude Oil

Production and

Transportation/

Storage Demand

Higher Prices

25%

Butane Blending,

Weather and NGL

Production

Lower Prices

15%

Lower Prices

25%

Motor Fuels

Supply/Demand

and Basis

Differentials

Lower Prices

10%

Water Volumes,

Rig Count and

Crude Oil Price

Higher Prices

25%

Primary Drivers:

Benefits From:

FY18 Forecasted

EBITDA

Contribution %:

NGL LOGO

The NGL business model has evolved into a vertically integrated business mix that serves as a natural hedge,

mitigating the impact of commodity price volatility across all segments

Crude

Logistics Water

Solutions

Liquids Retail

Propane Refined Products/

Renewables

Weather and

Heating Demand


Diversified Across Multiple Businesses and Producing Basins

Common Carrier Propane

Pipelines Basins

Grand Mesa Pipeline

Eagle Ford

Marcellus Shale

DJ Basin

Pinedale Anticline

Jonah Field

Niobrara Shale

Green River Basin

Bakken Shale

Wattenberg Field

Mississippi Lime

Granite Wash

Permian Basin

Water Services

NGL Assets

Crude Barges and

Tug Boats

Crude Oil Logistics

Colonial Products Pipeline

Retail Propane

TransMontaigne Terminal

NGL Rack Marketing Terminal

NGL Owned/Leased Assets

NGL Utilized Assets

Assets and Marketing

Presence Santa Fe Products Pipeline

Magellan Products Pipeline

NuStar Products Pipeline

NGL Crude Terminal

NuStar Energy Terminal

NGL Renewable Marketing

Terminal

6

NGL Operational Assumptions

7

Business Strategy

Build a Diversified

Vertically Integrated

Energy Business

Achieve Organic Growth

by Investing in New

Assets

Accretive Growth

through Strategic

Acquisitions

Focus on Businesses

that Generate Long-

Term Fee Based Cash

Flows

Transport crude oil from the wellhead to refiners

Refined Products from refiners to customers

Wastewater from the wellhead to treatment for disposal, recycle or discharge

Natural Gas Liquids from fractionators / hubs to end users, including refiners and retail propane customers

Projects that increase volumes, enhance our operations and generate attractive rates of return

Accretive organic growth opportunities that originate from assets we own and operate

Focused on projects within crude oil logistics, NGL liquids and refined products that provide high quality fee based revenues

Build upon our vertically integrated business

Scale our existing operating platforms

Enhance our geographic diversity

Continue our successful track record of acquiring companies and assets at attractive prices

Focus on long-term fee based contracts and back-to-back transactions that minimize commodity price exposure

Increase cash flows that are supported by certain fee-based multi-year contracts that include acreage dedication and volume commitments

Expand retail propane footprint where business has a high percentage of company owned tanks resulting in strong customer retention rates

Disciplined Capital

Structure

Target leverage levels that are consistent with investment grade companies

Maintain sufficient liquidity to manage existing and future capital requirements and take advantage of market opportunities

Prudent distribution coverage to manage commodity cycles and fund growth opportunities

8

Segment Contribution Recently Announced Divestitures

On December 26th 2017, NGL Energy Partners LP Announced the

Completion of the Sale of its 50% Interest in Glass Mountain Pipeline, LLC

to a fund managed by BlackRock Real Assets in partnership with

Navigator Energy Services for total gross consideration of $300 million

– The resulting debt reduction includes a prepayment in full of $195.0

million of 6.65% senior secured notes due June 19, 2022. Additionally

NGL repurchased approximately $88.7 million in principal amount of

its senior unsecured notes at various prices in the open market during

the quarter ended December 31, 2017

– As of 12/31/17, Glass Mountain Pipeline, LLC contributed

approximately $11.5 million in Adjusted EBITDA to NGL for FY2018

On November 7th 2017, NGL Energy Partners LP Announced an

Agreement to Sell Certain Retail Propane Businesses to DCC LPG for a

combined $220 Million

– NGL will retain this business through closing, which is scheduled for

March 31, 2018 and will also retain all profits generated through the

closing date

– These assets are expected to generate approximately $20 million in

Adjusted EBITDA from December 1, 2017 through March 31, 2018

resulting in a total value proposition to NGL of approximately $220

million

– The assets represent approximately 23% of FY2018 forecasted

EBITDA for the Retail Propane segment assuming normal weather

– Terms of the transaction provided for a $20 million cash deposit on

signing, which NGL immediately deployed towards debt repayment

Cushing

Alva

Arnett

Kingfisher

Glass Mountain Pipeline

STACK Extension

Retail Assets

to be Sold

Note: See press releases on NGL Energy Partners website

Value received by NGL from announced divestitures totals ~$520 million

9

Segment Contribution Grand Mesa Pipeline

Source: Active O&G wells denoted with blue dots, current rig locations denoted by a black rig icon and the heat map represents permit activity in the last 180 days based on data from

DrillingInfo as of 2/12/18

Grand Mesa Pipeline NGL Crude Terminal

DJ Basin

Niobrara Shale

Wattenberg Field

Cushing Storage

= Lucerne & Riverside

= Platteville

Grand Mesa

Share of

Capacity

~550 miles of 20” Crude oil pipeline from the DJ Basin to

Cushing, OK

NGL/Grand Mesa have 37.5% undivided joint interest

150,000 BPD capacity

Origin Station

Terminals

Lucerne & Riverside Terminals in Weld County, CO

16 total truck unloading bays capable of unloading over 325

trucks per day in aggregate

620,000 BBL origin tankage

Batching

Capabilities

Grand Mesa offers two unique batching specs allowing

producers to preserve their crude oil quality

Gathering

Connectivity

The Lucerne origin has inbound receipt connections to

multiple gathering systems including:

Platte River Midstream

Saddle Butte Pipeline

Noble Midstream

Destination

Terminal

NGL’s Cushing Terminal has 3.6 million barrels of total shell

capacity

Offers producers connectivity to multiple markets

including the Gulf Coast via TransCanada Marketlink

Financial

Guidance

Year 1 EBITDA: ~$120 million (11/2016 – 10/2017)

Year 2 EBITDA: ~$150 million (11/2017 – 10/2018)

Average remaining contract term on the pipeline is

approximately 8 years

10

Operating Segments

11

Segment Contribution Crude Oil Logistics

Area of Operation

Assets

Asset Summary

4 NGL Crude Logistics Tows NGL Cushing Crude Oil Storage Tanks

Crude Oil Pipelines

– 100% interest in Grand Mesa Pipeline; 150MBPD

capacity

– Ship on 16 common carrier pipelines

Crude Oil Storage

– Own 8 storage terminal facilities

– 3.6 MMbbls of storage in Cushing

– 1.6 MMbbls of storage in addition to Cushing

Crude Oil Transportation

– 29 LACT units, ~155 owned trucks and ~246 trailers

– ~797 GP railcars leased or owned

– Own 10 tows, 20 barges, >25Mbbls per barge capacity

$28

$73 $61 $59

$120

$-

$50

$100

$150

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018E

$-

$20

$40

$60

$80

$100

1/31/2015 1/31/2016 1/31/2017 1/31/2018

12

Segment Contribution Crude Oil Logistics

Crude WTI Spot Price Adjusted EBITDA (In Millions)

Crude BBL’s/Day (In Thousands) FY 2018 Forecast Assumptions

126

230 184

94 112

- - - 42

93

0

100

200

300

400

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018E

Crude Oil Logistics Grand Mesa

Grand Mesa Pipeline

– Total volumes average ~93kbpd

– Contributes ~$130 million in Adjusted EBITDA

Crude Assets

– Full year contribution from the Houma Terminal and Port

Comfort Terminal

– Glass Mountain removed from 4Q18 forecast

Crude Oil Marketing/Transportation

– Crude Marketing assumes volume growth from full year of

Grand Mesa and other recently completed assets

– Crude Transportation includes Marine, Trucking, and Rail

assets

– Average WTI Crude Price of $52.03

13

Segment Contribution Water Solutions

Area of Operation

Assets

Asset Summary

NGL saltwater disposal facility with solids processing capacity

72 water treatment and disposal facilities, including 94 wells across the Permian (35), Eagle Ford (31), DJ (21), Bakken (3), Granite Wash (3) and Pinedale Anticline (1) basins

Combined total of ~1.7 million bpd of disposal capacity

8 facilities that can dispose of solids such as tank bottoms and drilling fluids

1 facility in the Pinedale Anticline that can process water to a recycle and discharge (freshwater) standard

Numerous water pipelines which directly connect from oil and gas producing wells to NGL’s salt water disposal facilities

– Currently ~200kbpd of wastewater on pipelines, continuing to increase across our footprint

$68

$126

$72 $63

$120

$-

$50

$100

$150

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018E

14

Segment Contribution Water Solutions

U.S Oil Rig Count(1) Adjusted EBITDA (In Millions)

Water Disposal BBL’s/Day (In Thousands) FY 2018 Forecast Assumptions

Water disposal volume averages 731kbpd

– Primary growth focused in Permian (Delaware) and DJ basins

– FY18 exit volumes over 850kbpd

Average skim oil percentage forecasted at 0.42% for each disposal volume

– Average WTI Crude Price of $52.03

Pipelines, Solids disposal, Washouts, and other service revenues increase with volumes

Growth capital adds 3 new facilities and 6 new disposal wells to existing footprint

(1) Baker Hughes as of February 2018.

0

100

200

300

400

500

1/31/2015 1/31/2016 1/31/2017 1/31/2018

Permian Basin Eagle Ford Basin DJ Basin

207

443

570 502

731

2.4

3.4 3.0

2.0

3.1

-

1.0

2.0

3.0

4.0

5.0

0

200

400

600

800

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018E

Water BPD Skim Oil BPD

15

Segment Contribution Liquids

Area of Operation

Assets

Asset Summary

Railcar Rack NGL Thackerville Liquids Terminal West Memphis NGL Wholesale Liquids Terminal

21 terminals serving over 400 customers

– 12 terminals with rail unloading capability, 4 multi-

product terminals, 9 pipe-connected terminals

Approximately 3.5 million barrels of leased underground

storage, 0.35 million barrels of above ground storage

Sawtooth NGL Caverns - 5 Caverns with ~6.1 million

barrels of butane and propane storage capacity in Utah

Shipper on 5 common carrier pipelines

~ 5,000 leased railcars

– A portion of these railcars roll off lease in FY 2018

$87 $93 $101

$64 $65

$-

$50

$100

$150

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018E

16

Segment Contribution Liquids

Heating Degree Days Adjusted EBITDA (In Millions)

Propane, Butane & Other NGL’s GAL’s/Day (In Thousands) Propane, Butane & Other NGL’s Margin/GAL

Note: Did not provide butane volumes and margins in FY2014 and prior

$0.06

$0.04 $0.04 $0.03 $0.03

$0.13

$0.11

$0.06

$0.01 $-

$0.05

$0.10

$0.15

$0.20

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018E

Propane Margin Butane Margin

3,261 3,522 3,400 3,471

3,972

1,180 1,320 1,251 1,485

2,155

1,081 986 941 1,079

0

1,000

2,000

3,000

4,000

5,000

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018E

Propane Butane Other NGLs

17

Segment Contribution Retail Propane

Area of Operation

Assets

Asset Summary

Propane storage tanks at retail location Propane delivery truck

Own or lease 128 customer service locations

Own or lease 119 satellite distribution locations

Aggregate propane storage capacity of 17.5 million gallons

Aggregate distillate storage capacity of 5.6 million gallons

Own 500 bulk storage tanks with capacities ranging from 2,000 to 90,000 gallons

72% residential customers; 27% commercial and industrial customers

18


Sample of Trade Names Adjusted EBITDA (In Millions)

Propane & Distillate GAL’s/Day (In Thousands)

Retail Propane

Total Propane Volume and Heating Degree Days(1)

(1) NOAA National Centers for Environmental information, Climate at a Glance: U.S. Time Series, Heating Degree Days, published February 2018, retrieved on

February 9, 2018 from http://www.ncdc.noaa.gov/cag/

$91 $97 $79

$91

$115

$-

$50

$100

$150

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018E

445 464 416

487

561

96 96 84 82 90

$0.96 $0.98 $1.08

$0.99 $0.98

$0.53 $0.59

$0.54 $0.59 $0.55

$-

$0.50

$1.00

$1.50

0

100

200

300

400

500

600

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018E

Propane Distillate

Propane Margin Distillate Margin

162,361 169,279 152,238 177,599

204,647

4,731 4,487

3,729 3,831

4,130

0

2000

4000

6000

0

50,000

100,000

150,000

200,000

250,000

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018E

Degree Days

GAL's (In Thousands)

Retail Propane Volumes Heating Degree Days

https://www.downeastenergy.com/





http://www.ncdc.noaa.gov/cag/

19

Segment Contribution Refined Products/Renewables

Area of Operation

Assets

Asset Summary

Collins, MS Refined Products Terminal E Energy Adams Ethanol Plant

Line Space on the Colonial and Plantation pipelines

Sales from approximately 200 terminals over 37 states

Approx. 9.0 million barrels of storage capacity

Long-term Lease of TLP SE Terminals along Colonial and

Plantation pipelines

– Additional Storage capacity throughout the United States

Rack sales through common carrier pipeline terminals

Equity owner in Ethanol Plant in Nebraska

$8

$79

$134 $125

$50

$-

$50

$100

$150

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018E

20


DOE Total U.S. Gas Supplied(1) Adjusted EBITDA (In Millions)

Refined Products/Renewables BBL’s/Day (In Thousands) FY 2018 Forecast Assumptions

Refined Products/Renewables

(1) Department of Energy EIA weekly data for 2/9/18.

Southeast (Colonial and Plantation pipelines)

– Total volumes average approximately 130kbpd

– Average margin of $0.03 per gallon

– Additional storage at Collins and butane blending to contribute a full year

Rack & Mid-Continent

– Diesel demand growth in the Permian basin

– Increased storage capacity by ~250kbbls

– Average margin less than $0.01 per gallon

Renewables

– No significant legislative impact

7,500

8,000

8,500

9,000

9,500

10,000

2011 to 2015 Range

2011 to 2015 Average 2016

2017 2018

27

186

270

386 429

10 15 16 19 18

$0.05

$0.03

$0.01

$0.05

$0.01

$0.05

$-

$0.02

$0.04

$0.06

$0.08

$0.10

0

100

200

300

400

500

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018E

Refined Products Renewables

Refined Products Margin per GAL Renewables Margin per GAL

21

Financial Overview

22

Financial Objectives

The Partnership has made significant strides and will continue to

pursue a flexible balance sheet with a leverage target of less than

3.25x on a compliance basis

Goal of achieving investment grade rating

Increasing fee-based business and long-term contracts with high

credit quality customers

Transitioning to a more traditional midstream repeatable cash flow

model

Continue to pursue opportunities to find and execute on low cost of

capital financing in the current and future environments

Consistently pursuing strategies that increase NGL’s unit price and

lower cost of debt

Five business segments provide multiple growth platforms

Accretive growth through organic growth projects and strategic

acquisitions focused on assets backed by multi-year fee based

contracted cash flows

Sufficient liquidity to operate the business and execute growth objectives

Targeting over 1.3x distribution coverage

Excess distribution coverage will be used to strengthen the balance

sheet and fund growth opportunities

Strong Balance

Sheet

Cash Flow

Predictability

Lower Cost of

Capital

Accretive Capital

Projects

Robust Distribution

Coverage


3Q '18 3Q '17 % Variance

Total Volume (In Thousand's)

Refined Products/Renewables

Gasoline (BBL's) 22,902 22,227 3%

Diesel (BBL's) 15,004 13,215 14%

Ethanol (BBL's) 900 1,125 -20%

Biodiesel (BBL's) 477 733 -35%

Crude Oil (BBL's) 10,006 7,527 33%

Liquids

Propane (GAL's) 399,211 386,854 3%

Butane (GAL's) 191,504 149,403 28%

Other NGL's (GAL's) 104,136 89,974 16%

Retail Propane

Propane (GAL's) 62,058 56,572 10%

Distillates (GAL's) 9,381 9,139 3%

Water Disposal (BBL's) 72,624 47,489 53%

Total Revenue 4,463.3$ 3,406.6$ 31%

Total Cost of Sales 4,272.8$ 3,228.0$ 32%

Adjusted EBITDA 122.6$ 120.7$ 2%

Distributable Cash Flow 60.8$ 76.0$ -20%

Distribution to LP Unitholders 0.39$ 0.39$ 0%

TTM Distribution Coverage 0.70x 1.52x

Maintenance Capex 12.2$ 5.2$ 134%

Growth Capex with Investments 53.9$ 74.6$ -28%

Covenant Compliance Leverage 5.1x 4.5x

Total L-T Debt (Excluding Working Capital Facility) 1,907.0$ 2,341.0$ -19%

Working Capital Facility 1,014.5$ 875.5$ 16%

Total Liquidity 471.8$ 913.9$ -48%

23

3rd Quarter Update

Segment Summary

– Grand Mesa outperformed expectations while the rest of Crude Logistics

performed in-line with expectations

– Liquids was impacted by unrecovered railcar fleet costs, excess storage

capacity and significant butane supply impacting differentials, and performed

below expectations

– Retail Propane performed in-line with expectations

– Water Solutions outperformed expectations and has continued to benefit from

the increased rig counts and increased completion activities related to drilled

but uncompleted wells in the basins in which it operates, particularly in the

Permian Basin

– Refined Products/Renewables continues to face headwinds due to a reduction

in gasoline values at our terminals relative to NYH, low line space on Colonial

pipeline and backwardated forward curves, and performed below expectations

Quarterly Summary Performance ($’s In Millions)

(1) Does not include acquisition expenses.

(2) Covenant Compliance Leverage excludes the working capital facility and includes Pro Forma effects or projects in construction, or recent acquisitions/divestitures

(1)

(2)

(1)

Executed balance sheet and leverage improving transactions:

– Note Repurchases:

• Repurchased the remaining balance of 6.65% Senior Secured Notes

• Repurchased approximately $89 million of outstanding Unsecured

Notes at 98.8% of par

– Asset Sales:

• Announced an Agreement to Sell Certain Retail Propane Businesses

to DCC LPG for a combined $220 Million

• Announced the Completion of the Sale of its 50% Interest in Glass

Mountain Pipeline, LLC for total gross consideration of $300 million

$169

$320

$274

$235 $225-235

$168

$266 $290

$182

$225

FY 2014 FY 2015 FY2016 FY 2017 FY2018E

Distributable Cash Flow Distributions

1.0x

1.2x

1.0x

1.3x

1.0x

FY 2014 FY 2015 FY2016 FY 2017 FY2018E

24

Performance Metrics

Distributable Cash Flow & Total Distributions (In Millions)

Adjusted EBITDA (In Millions) Acquisition, Growth and Maintenance Capex (In Millions)

Distribution Coverage

1.3x

Target

(1) Does not include TLP capital expenditures (2) Includes the GP and preferred unit distributions if any

(1)

(2)

$24

$184

$271

$443 $424 $381

$440-450

IPO FY 2013 FY 2014 FY 2015 FY2016 FY 2017 FY 2018E

$491

$1,269

$961

$138 $164

$- $59

$133 $160

$600

$334

$150-200

$14 $32 $35 $30 $26 $30

FY 2013 FY 2014 FY 2015 FY2016 FY 2017 FY 2018E

Acquisitions Growth Capital Maintenance Capital

12/31/2017 3/31/2017 Variance

Cash and Equivalents 28,469$ 12,264$ 16,205$

Total Debt:

Senior Secured Revolving Credit Facilities

Working Capital Facility 1,014,500 814,500 200,000

Acquisition Facility 125,000 - 125,000

6.650% Senior Secured Notes due 2022 - 250,000 (250,000)

5.125% Senior Notes due 2019 360,781 379,458 (18,677)

6.875% Senior Notes due 2021 367,048 367,048 -

7.500% Senior Notes due 2023 656,589 700,000 (43,411)

6.125% Senior Notes due 2025 412,507 500,000 (87,493)

Other Long-Term Debt 11,684 15,525 (3,841)

Total Debt, Excluding Working Capital Facility 1,933,609$ 2,212,031$ (278,422)$

10.75% Class A Convertible Preferred Units 76,056$ 63,890$ 12,166$

Redeemable Noncontrolling Interest 4,011 3,072 939

Equity:

General Partner (50,869) (50,529) (340)

Limited Partners 1,823,740 2,192,413 (368,673)

Class B preferred limited partners 202,731 - 202,731

Accumulated Other Comprehensive Loss (1,478) (1,828) 350

Noncontrolling interests 7,270 26,746 (19,476)

Total Capitalization 3,995,070$ 4,445,795$ (450,725)$

2.9x

3.2x 3.2x

3.9x

4.7x

4.0x

.0x

1.5x

3.0x

4.5x

6.0x

FY 2013 FY 2014 FY 2015 FY2016 FY 2017 FY 2018E

Credit Profile

Debt Maturities as of 12/31/17 (In Millions)

Covenant Compliance Leverage

3.25x

Target

Capitalization (In Thousands)

(1) Covenant Compliance Leverage excludes acquisition expenses, excludes the working capital facility and includes Pro Forma adjustments for projects in construction or recent acquisitions/divestitures. Total

Indebtedness at December 31, 2017 per the Partnership’s Credit Facility and used for covenant compliance totaled $1.9 billion .

(2) Convertible Preferred Units included in Total Partners’ Capital calculation.

(1)

25

This

is

tied

out

$1,140

$361 $367

$657

$413

$-

$200

$400

$600

$800

$1,000

$1,200

Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-25

Credit Facility due 10/2021 5.125% Notes due 7/2019 6.875% Notes due 10/2021

7.500% Notes due 11/2023 6.125% Notes due 2/2025

NGL Operational Assumptions

26

Key Investment Highlights

Diversified and

Attractive Asset Base

Multiple business segments with significant geographic diversity reduce cash flow volatility

Presence in the highest rate of return oil & gas producing regions in North America as well as the highest growing

population areas for consumer demand

Natural hedge between business segments reduces commodity price volatility and risk exposure

Vertical and Horizontal

Integration

Vertical integration allows for capture of margin across the value chain from wellhead to end-user

Emphasis on asset ownership drives ability to capitalize on multiple revenue/bolt-on opportunities

Offer a menu of services to producers and customers

Stable Cash Flows

Focus on medium to long-term, repeatable fee-based cash flows

Combination of fee-based, take-or-pay, acreage dedication, margin-based and cost-plus revenue contracts

Targeting ~70% fee based revenues in normal commodity price environment

Strong Credit Profile and

Liquidity

Targeting a capital structure with compliance leverage of under 3.25x

Targeting a distribution coverage over 1.3x on a TTM basis

Excess distribution coverage will be reinvested in growth opportunities and reduce indebtedness

Experienced & Incentivized

Management Team

Extensive industry and MLP experience with proven record of acquiring, integrating, operating and growing

successful businesses

Senior management holds significant limited partner interests, which strengthens alignment of incentives with

lenders and public unitholders

Supportive general partner which is privately owned, of which over 65% is held by current and former management

and directors, with no indebtedness

27

Appendix

28

NGL Organizational Chart

NGL Energy Holdings LLC

G.P. (DE LLC) 0.1% GP Interest

IDR’s

NGL Energy Operating LLC

(DE LLC)

NGL Water Solutions (NGL Water Solutions, LLC)

Members

(1) Includes the operations of our Legacy Gavilon crude oil logistics, refined products, and renewables businesses.

99.9% LP Interest

Limited Partners

NGL Energy Partners LP (NYSE: NGL)

(DE LP)

NGL Liquids (NGL Liquids, LLC)

NGL Retail Propane (NGL Propane, LLC)

NGL Refined

Products/Renewables (TransMontaigne LLC)

100%

100%

NGL Crude Logistics (NGL Crude Logistics, LLC) (1)

121,083,664 C.U. Outstanding

2017 2016 2017 2016

Net income (loss) 56,769$ 1,293$ (180,517)$ 117,388$

Less: Net income attributable to noncontrolling interests (89) (317) (221) (6,091)

Less: Net (income) loss attributable to redeemable noncontrolling interests (424) - 261 -

Net income (loss) attributable to NGL Energy Partners LP 56,256 976 (180,477) 111,297

Interest expense 51,825 41,486 151,391 105,283

Income tax expense 364 1,114 934 2,036

Depreciation and amortization 67,025 64,644 204,514 171,746

EBITDA 175,470 108,220 176,362 390,362

Net unrealized losses (gains) on derivatives 775 (3,957) 16,851 (737)

Inventory valuation adjustment 27,786 7,859 6,439 40,552

Lower of cost or market adjustments (3,907) 731 5,504 839

(Gain) loss on disposal or impairment of assets, net (111,479) 35 (11,241) (203,469)

Loss (gain) on early extinguishment of liabilities, net 21,141 - 22,479 (30,890)

Revaluation of investments - - - 14,365

Equity-based compensation expense 12,228 6,865 27,114 39,859

Acquisition expense 186 378 132 1,539

Revaluation of liabilities - - 5,600 -

Other 448 617 3,089 7,734

Adjusted EBITDA 122,648 120,748 252,329 260,154

Less: Cash interest expense 49,043 38,405 142,758 96,796

Less: Income tax expense 364 1,114 934 2,036

Less: Maintenance capital expenditures 12,156 5,205 26,677 17,901

Less: Other 316 19 549 19

Distributable Cash Flow 60,769$ 76,005$ 81,411$ 143,402$

Three Months Ended December 31, Nine Months Ended December 31,

(in thousands)

29

3Q’18 Adjusted EBITDA Walk

30

3Q’18 & 3Q’17 Adjusted EBITDA by Segment

Crude Oil Logistics Water Solutions Liquids Retail Propane

Refined Products and

Renewables Corporate and Other Consolidated

Operating income (loss) 106,279$ (1,373)$ 22,290$ 23,972$ (4,791)$ (21,846)$ 124,531$

Depreciation and amortization 20,092 24,586 6,247 11,130 323 962 63,340

Amortization recorded to cost of sales 85 - 70 - 1,350 - 1,505

Net unrealized losses (gains) on derivatives 962 8,504 (8,550) (141) - - 775

Inventory valuation adjustment - - - - 27,786 - 27,786

Lower of cost or market adjustments 5,207 - - - (9,114) - (3,907)

(Gain) loss on disposal or impairment of assets, net (107,574) 2,929 (214) 908 (7,529) - (111,480)

Equity-based compensation expense - - - - - 12,228 12,228

Acquisition expense - - - - - 186 186

Other income, net 5 190 93 29 151 1,639 2,107

Adjusted EBITDA attributable to unconsolidated entities 3,887 144 - 902 1,018 - 5,951

Adjusted EBITDA attributable to noncontrolling interest - (185) - (637) - - (822)

Other 1,377 91 21 (1,041) - - 448

Adjusted EBITDA 30,320$ 34,886$ 19,957$ 35,122$ 9,194$ (6,831)$ 122,648$




Operating (loss) income (9,163)$ (11,898)$ 24,765$ 21,772$ 8,209$ (11,128)$ 22,557$

Depreciation and amortization 16,503 27,150 4,441 11,379 404 890 60,767


Net unrealized losses (gains) on derivatives 732 (1,304) (3,387) 2 - - (3,957)


Lower of cost or market adjustments - - - - 731 - 731

Loss (gain) on disposal or impairment of assets, net 4,655 2,323 60 (62) (6,941) (1) 34


Acquisition expense - - - (2) - 380 378

Other income, net 721 1,214 4 19 16,220 1,829 20,007

Adjusted EBITDA attributable to unconsolidated entities 2,577 54 - (111) 1,867 - 4,387

Adjusted EBITDA attributable to noncontrolling interest - (667) - (583) - - (1,250)

Other 481 116 20 - - - 617

Adjusted EBITDA 16,606$ 16,988$ 26,098$ 32,414$ 29,807$ (1,165)$ 120,748$

Three Months Ended December 31, 2017

(in thousands)

Three Months Ended December 31, 2016

(in thousands)

31

3Q’18 YTD & 3Q’17 YTD Adjusted EBITDA by Segment




Operating income (loss) 111,832$ (10,075)$ (104,589)$ 8,878$ 30,747$ (56,031)$ (19,238)$

Depreciation and amortization 61,885 73,847 18,718 34,205 971 2,801 192,427


Net unrealized losses on derivatives 2,473 11,526 2,763 89 - - 16,851


Lower of cost or market adjustments 5,207 - - - 297 - 5,504

(Gain) loss on disposal or impairment of assets, net (111,290) 3,114 117,515 2,004 (22,585) - (11,242)


Acquisition expense - - - - - 132 132

Other income, net 99 210 100 280 486 4,938 6,113

Adjusted EBITDA attributable to unconsolidated entities 11,507 425 - 891 3,125 - 15,948

Adjusted EBITDA attributable to noncontrolling interest - (619) - (385) - - (1,004)

Revaluation of liabilities - 5,600 - - - - 5,600

Other 3,790 276 64 (1,041) - - 3,089

Adjusted EBITDA 85,757$ 84,304$ 34,782$ 44,921$ 23,611$ (21,046)$ 252,329$




Operating (loss) income (28,827)$ 63,136$ 33,092$ 10,553$ 169,365$ (66,690)$ 180,629$

Depreciation and amortization 34,496 76,713 13,315 31,771 1,237 2,744 160,276


Net unrealized losses (gains) on derivatives 951 (2,138) 239 211 - - (737)


Lower of cost or market adjustments - - - - 839 - 839

Loss (gain) on disposal or impairment of assets, net 14,617 (91,958) 109 (96) (126,101) (4) (203,433)


Acquisition expense - - - - - 1,539 1,539

Other (expense) income, net (589) 1,524 67 339 19,099 5,420 25,860

Adjusted EBITDA attributable to unconsolidated entities 7,651 (9) - (388) 3,543 - 10,797

Adjusted EBITDA attributable to noncontrolling interest - (2,298) - (442) - - (2,740)

Other 1,276 279 60 - - - 1,615

Adjusted EBITDA 29,859$ 45,249$ 47,467$ 41,948$ 112,763$ (17,132)$ 260,154$

(in thousands)

Nine Months Ended December 31, 2016

(in thousands)

Nine Months Ended December 31, 2017

investor presentation april 2018 -...

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