Business Wire | Feb 9, 2021 04:30PM EST

NGL Energy Partners LP Announces Third Quarter Fiscal 2021 Financial Results

Feb. 09, 2021

TULSA, Okla.--(BUSINESS WIRE)--Feb. 09, 2021--NGL Energy Partners LP (NYSE:NGL) ("NGL," "our," "we," or the "Partnership") today reported its third quarter fiscal 2021 results. Highlights for the quarter include:

* Loss from continuing operations for the third quarter of Fiscal 2021 of $380.4 million, primarily a result of a $383.6 million write down of goodwill and certain intangibles related to the impact of the bankruptcy rejection of transportation contracts with Extraction Oil & Gas, Inc. ("Extraction"), compared to income from continuing operations of $49.1 million for the third quarter of Fiscal 2020 * Announcement of a global settlement agreement with Extraction which, among other consideration, provides for: (i) a new long-term supply agreement, which includes a significant acreage dedication in the DJ Basin, and retains Extraction's crude oil volumes for shipping on the Grand Mesa Pipeline; (ii) a new rate structure under the supply agreement, with an agreed upon differential plus an increase in the rate when New York Mercantile Exchange ("NYMEX") prices exceed $50.00 per barrel; and (iii) the receipt of $35.0 million from Extraction as a liquidated payment for the Partnership's unsecured claims * Successful start-up of our Poker Lake pipeline, which has an initial capacity of over 350,000 barrels per day and connects into our integrated Delaware Basin produced water pipeline infrastructure network * Adjusted EBITDA from continuing operations for the third quarter of Fiscal 2021 of $125.0 million, impacted by lower volumes on the Grand Mesa Pipeline, lower demand in the Liquids and Refined Products segment due to the COVID-19 pandemic and lower earnings associated with biodiesel tax credits, compared to $200.5 million for the third quarter of Fiscal 2020

Subsequent to December 31, 2020, the Partnership announced the completion of a private offering of $2.05 billion of 7.5% 2026 senior secured notes ("2026 Secured Notes") and a new $500.0 million asset-based revolving credit facility ("ABL Facility"). The proceeds received from these transactions were used to repay all outstanding amounts under the Partnership's existing $1.915 billion revolving credit facility due in October 2021 and its $250.0 million term loan facility and terminate those agreements, as well as to pay all fees and expenses associated with the transactions. In connection with these transactions, the Partnership has temporarily suspended all common unit and preferred unit distributions until total leverage has been reduced to an agreed upon level.

"The Partnership made significant progress on numerous fronts during its fiscal third quarter. The successful completion of the Poker Lake pipeline allowed our Water Solutions segment to begin receiving disposal volumes from its Poker Lake Dedication and will facilitate future growth from the development. The finalization of our negotiations with Extraction around our future operating relationship preserved barrels to be transported on the Grand Mesa Pipeline and removed a significant point of uncertainty in our future earnings." stated Mike Krimbill, NGL's CEO. "Subsequent to the quarter's end, we successfully extended our short-term debt maturities and provided the Partnership with improved liquidity and a long-term runway with which it can concentrate on deleveraging the balance sheet with an eye towards reinstating both the preferred and common unit distributions as soon as possible. Before entering into the agreement that restricts distributions, management and the Board first considered many other options and, based on the totality of the circumstances, determined and strongly believes the chosen path forward is in the best interest of all stakeholders," Krimbill concluded.

Quarterly Results of Operations

The following table summarizes operating income (loss) and Adjusted EBITDA from continuing operations by reportable segment for the periods indicated:

Quarter Ended

December 31, 2020 December 31, 2019

Operating Adjusted Operating Adjusted Income (Loss) EBITDA Income EBITDA (Loss)

(in thousands)

Crude Oil Logistics $ (382,192 ) $ 26,332 $ 28,696 $ 55,575

Liquids and Refined 32,438 41,824 89,038 93,211 Products

Water Solutions 15,821 65,554 (583 ) 62,214

Corporate and Other (12,374 ) (8,670 ) (20,756 ) (10,489 )

Total $ (346,307 ) $ 125,040 $ 96,395 $ 200,511

The tables included in this release reconcile operating income (loss) to Adjusted EBITDA from continuing operations, a non-GAAP financial measure, on a consolidated basis and for each of the Partnership's reportable segments.

Crude Oil Logistics

On December 21, 2020, the Partnership announced a global settlement agreement with Extraction, as it relates to Extraction's emergence from bankruptcy, which occurred on January 21, 2021. Among other consideration, the global settlement agreement provides for the following: (i) a new long-term supply agreement, which includes a significant acreage dedication in the DJ Basin, and retains Extraction's crude oil volumes for shipping on the Grand Mesa Pipeline; (ii) a new rate structure under the supply agreement, with an agreed upon differential plus an increase in the rate when NYMEX prices exceed $50.00 per barrel; and (iii) the receipt of $35.0 million from Extraction as a liquidated payment for the Partnership's unsecured claims related to the rejected transportation contracts, which was received on January 21, 2021.

Operating income for the third quarter of Fiscal 2021 decreased compared to the third quarter of Fiscal 2020 primarily due to impairment charges of $383.6 million related to the write down of goodwill and certain intangible assets due to the impact of the rejection of transportation contracts with Extraction in connection with its bankruptcy. During the three months ended December 31, 2020, financial volumes on the Grand Mesa Pipeline averaged approximately 69,000 barrels per day, compared to approximately 134,000 barrels per day for the three months ended December 31, 2019. These volumes are expected to increase going forward as the global settlement agreement with Extraction begins to take effect and as drilling and completion activity increases in the DJ Basin.

Liquids and Refined Products

Total product margin per gallon, excluding the impact of derivatives, was $0.048 for the quarter ended December 31, 2020, compared to $0.091 for the quarter ended December 31, 2019. This decrease was primarily due to higher supply costs and lower demand resulting from the COVID-19 pandemic.

Refined products volumes decreased by approximately 112.8 million gallons, or 34.5%, during the quarter ended December 31, 2020 compared to the quarter ended December 31, 2019. Propane volumes decreased by approximately 86.7 million gallons, or 18.5%, and butane volumes decreased by approximately 63.3 million gallons, or 22.9%, when compared to the quarter ended December 31, 2019. Other product volumes decreased by approximately 46.4 million gallons, or 27.5%, during the quarter ended December 31, 2020 compared to the same period in the prior year. The decrease in refined products, propane, butane and other product volumes was also primarily due to the continued lower demand as a result of the COVID-19 pandemic.

Additionally, the Partnership received the $13.8 million one-time benefit of certain biofuel tax credits that had been accumulated in prior periods and recognized in the quarter ended December 31, 2019.

Water Solutions

The Partnership processed approximately 1.41 million barrels of water per day during the quarter ended December 31, 2020, a 10.9% decrease when compared to produced water processed per day during the quarter ended December 31, 2019. This decrease was primarily due to lower disposal volumes in all basins, other than the Northern Delaware basin, during the period resulting from lower crude oil prices, drilling activity and production volumes. The increase in disposal volumes during the three months ended December 31, 2020 in the Northern Delaware basin was primarily driven by three months of activity from the assets acquired from Hillstone Environmental Partners, LLC ("Hillstone") in November 2019 as well as new produced water volumes received upon the completion and commencement of the Partnership's Poker Lake pipeline. The pipeline and tie-ins, which have the initial capacity of over 350,000 barrels per day and connects into the Partnership's integrated Delaware Basin produced water pipeline infrastructure network, was successfully completed in October 2020.

Revenues from recovered crude oil, including the impact from realized skim oil hedges, totaled $11.4 million for the quarter ended December 31, 2020, a decrease of $6.4 million from the prior year period. This decrease was the result of lower volumes and lower crude oil prices. The percentage of recovered crude oil per barrel of produced water processed has declined over the past several periods due to an increase in produced water transported through pipelines (which contains less oil per barrel of produced water) and the addition of contract structures that allow certain producers to keep the skim oil recovered from produced water.

Operating expenses in the Water Solutions segment decreased to $0.27 per barrel compared to $0.42 per barrel in the comparative quarter last year. The Partnership has taken significant steps to reduce operating costs and continues to evaluate cost saving initiatives in the current environment.

Corporate and Other

Corporate and Other expenses decreased from the comparable prior year period primarily due to lower compensation expense, in particular cash and non-cash incentive compensation, and a reduction in acquisition related expenses. These decreases were partially offset by legal costs incurred for defending the rejection of our transportation contracts in the Extraction bankruptcy proceedings.

Capitalization and Liquidity

Total debt outstanding was $3.28 billion at December 31, 2020 compared to $3.15 billion at March 31, 2020, an increase of $131 million due primarily to the funding of certain capital expenditures incurred prior to and accrued on March 31, 2020 as well as $100.0 million of deferred purchase price of Mesquite Disposals Unlimited, LLC ("Mesquite"). Capital expenditures incurred totaled $11.5 million during the third quarter (including $6.3 million in maintenance expenditures) and $65.9 million year-to-date (including $22.3 million in maintenance expenditures). These expenditures have decreased throughout Fiscal 2021 with original full year expectations totaling $100 million or less for both growth and maintenance capital expenditures combined. Total liquidity (cash plus available capacity on our revolving credit facility) was approximately $103.1 million as of December 31, 2020.

On February 4, 2021, the Partnership closed on the 2026 Secured Notes and the ABL Facility. The proceeds received were used to repay all outstanding amounts under the Partnership's existing $1.915 billion revolving credit facility and repay its $250 million term credit facility, along with all fees and expenses associated with these repayments and the issuance of the 2026 Secured Notes and the ABL Facility. The Partnership currently has approximately $340 million in availability under the ABL Facility, net of all currently outstanding borrowings and letters of credit.

In connection with the refinancing, the Partnership agreed to certain restricted payment provisions under the 2026 Secured Notes and the ABL Facility. One of these provisions requires the Partnership to temporarily suspend the quarterly common unit distribution beginning with respect to the quarter ended December 31, 2020, as well as distributions on all of the Partnership's preferred units, until the total leverage ratio falls below 4.75x. The cash savings from this suspension should accelerate the deleveraging of the Partnership's balance sheet and increase liquidity, thereby creating more financial flexibility for the Partnership going forward.

Third Quarter Conference Call Information

A conference call to discuss NGL's results of operations is scheduled for 4:00 pm Central Time on Tuesday, February 9, 2021. Analysts, investors, and other interested parties may access the conference call by dialing (800) 291-4083 and providing access code 5176744. An archived audio replay of the conference call will be available for 7 days beginning at 1:00 pm Central Time on February 10, 2021, which can be accessed by dialing (855) 859-2056 and providing access code 5176744.

Non-GAAP Financial Measures

NGL defines EBITDA as net income (loss) attributable to NGL Energy Partners LP, plus interest expense, income tax expense (benefit), and depreciation and amortization expense. NGL defines Adjusted EBITDA as EBITDA excluding net unrealized gains and losses on derivatives, lower of cost or net realizable value adjustments, gains and losses on disposal or impairment of assets, gains and losses on early extinguishment of liabilities, equity-based compensation expense, acquisition expense, revaluation of liabilities, certain legal settlements and other. NGL also includes in Adjusted EBITDA certain inventory valuation adjustments related to TransMontaigne Product Services, LLC ("TPSL"), our refined products business in the mid-continent region of the United States ("Mid-Con") and our gas blending business in the southeastern and eastern regions of the United States ("Gas Blending"), which are included in discontinued operations, and certain refined products businesses within NGL's Liquids and Refined Products segment, as discussed below. EBITDA and Adjusted EBITDA should not be considered as alternatives to net (loss) income, (loss) income from continuing operations before income taxes, cash flows from operating activities, or any other measure of financial performance calculated in accordance with GAAP, as those items are used to measure operating performance, liquidity or the ability to service debt obligations. NGL believes that EBITDA provides additional information to investors for evaluating NGL's ability to make quarterly distributions to NGL's unitholders and is presented solely as a supplemental measure. NGL believes that Adjusted EBITDA provides additional information to investors for evaluating NGL's financial performance without regard to NGL's financing methods, capital structure and historical cost basis. Further, EBITDA and Adjusted EBITDA, as NGL defines them, may not be comparable to EBITDA, Adjusted EBITDA, or similarly titled measures used by other entities.

Other than for the TPSL, Mid-Con, and Gas Blending businesses, which are included in discontinued operations, and certain businesses within NGL's Liquids and Refined Products segment, for purposes of the Adjusted EBITDA calculation, NGL makes a distinction between realized and unrealized gains and losses on derivatives. During the period when a derivative contract is open, NGL records changes in the fair value of the derivative as an unrealized gain or loss. When a derivative contract matures or is settled, NGL reverses the previously recorded unrealized gain or loss and record a realized gain or loss. NGL does not draw such a distinction between realized and unrealized gains and losses on derivatives of the TPSL, Mid-Con, and Gas Blending businesses, which are included in discontinued operations, and certain businesses within NGL's Liquids and Refined Products segment. The primary hedging strategy of these businesses is to hedge against the risk of declines in the value of inventory over the course of the contract cycle, and many of the hedges cover extended periods of time. The "inventory valuation adjustment" row in the reconciliation table reflects the difference between the market value of the inventory of these businesses at the balance sheet date and its cost, adjusted for the impact of seasonal market movements related to our base inventory and the related hedge. NGL includes this in Adjusted EBITDA because the unrealized gains and losses associated with derivative contracts associated with the inventory of this segment, which are intended primarily to hedge inventory holding risk and are included in net income, also affect Adjusted EBITDA.

Distributable Cash Flow is defined as Adjusted EBITDA minus maintenance capital expenditures, income tax expense, cash interest expense, preferred unit distributions and other. Maintenance capital expenditures represent capital expenditures necessary to maintain the Partnership's operating capacity. Distributable Cash Flow is a performance metric used by senior management to compare cash flows generated by the Partnership (excluding growth capital expenditures and prior to the establishment of any retained cash reserves by the Board of Directors) to the cash distributions expected to be paid to unitholders. Using this metric, management can quickly compute the coverage ratio of estimated cash flows to planned cash distributions. This financial measure also is important to investors as an indicator of whether the Partnership is generating cash flow at a level that can sustain, or support an increase in, quarterly distribution rates. Actual distribution amounts are set by the Board of Directors.

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.

NGL provides Adjusted EBITDA guidance that does not include certain charges and costs, which in future periods are generally expected to be similar to the kinds of charges and costs excluded from Adjusted EBITDA in prior periods, such as income taxes, interest and other non-operating items, depreciation and amortization, net unrealized gains and losses on derivatives, lower of cost or net realizable value adjustments, gains and losses on disposal or impairment of assets, gains and losses on early extinguishment of liabilities, equity-based compensation expense, acquisition expense, revaluation of liabilities and items that are unusual in nature or infrequently occurring. The exclusion of these charges and costs in future periods will have a significant impact on the Partnership's Adjusted EBITDA, and the Partnership is not able to provide a reconciliation of its Adjusted EBITDA guidance to net income (loss) without unreasonable efforts due to the uncertainty and variability of the nature and amount of these future charges and costs and the Partnership believes that such reconciliation, if possible, would imply a degree of precision that would be potentially confusing or misleading to investors.

About NGL Energy Partners LP

NGL Energy Partners LP, a Delaware limited partnership, is a diversified midstream energy company that transports, stores, markets and provides other logistics services for crude oil, natural gas liquids and other products and transports, treats and disposes of produced water generated as part of the oil and natural gas production process.

For further information, visit the Partnership's website at www.nglenergypartners.com.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(in Thousands, except unit amounts)

December 31, March 31, 2020 2020

ASSETS

CURRENT ASSETS:

Cash and cash equivalents $ 9,223 $ 22,704

Accounts receivable-trade, net of allowance forexpected credit losses of $3,681 and $4,540, 599,207 566,834 respectively

Accounts receivable-affiliates 17,194 12,934

Inventories 169,654 69,634

Prepaid expenses and other current assets 120,414 101,981

Total current assets 915,692 774,087

PROPERTY, PLANT AND EQUIPMENT, net of accumulateddepreciation of $663,185 and $529,068, 2,744,374 2,851,555 respectively

GOODWILL 744,439 993,587

INTANGIBLE ASSETS, net of accumulatedamortization of $494,910 and $631,449, 1,322,697 1,612,480 respectively

INVESTMENTS IN UNCONSOLIDATED ENTITIES 21,589 23,182

OPERATING LEASE RIGHT-OF-USE ASSETS 156,398 180,708

OTHER NONCURRENT ASSETS 46,521 63,137

Total assets $ 5,951,710 $ 6,498,736

LIABILITIES AND EQUITY

CURRENT LIABILITIES:

Accounts payable-trade $ 506,792 $ 515,049

Accounts payable-affiliates 42,604 17,717

Accrued expenses and other payables 102,769 232,062

Advance payments received from customers 17,024 19,536

Current maturities of long-term debt 2,146 4,683

Operating lease obligations 48,082 56,776

Total current liabilities 719,417 845,823

LONG-TERM DEBT, net of debt issuance costs of$20,426 and $19,795, respectively, and current 3,278,443 3,144,848 maturities

OPERATING LEASE OBLIGATIONS 106,292 121,013

OTHER NONCURRENT LIABILITIES 103,888 114,079



CLASS D 9.00% PREFERRED UNITS, 600,000 and600,000 preferred units issued and outstanding, 551,097 537,283 respectively



EQUITY:

General partner, representing a 0.1% interest, (51,935) (51,390) 129,297 and 128,901 notional units, respectively

Limited partners, representing a 99.9% interest,129,168,035 and 128,771,715 common units issued 826,973 1,366,152 and outstanding, respectively

Class B preferred limited partners, 12,585,642and 12,585,642 preferred units issued and 305,468 305,468 outstanding, respectively

Class C preferred limited partners, 1,800,000 and1,800,000 preferred units issued and outstanding, 42,891 42,891 respectively

Accumulated other comprehensive loss (266) (385)

Noncontrolling interests 69,442 72,954

Total equity 1,192,573 1,735,690

Total liabilities and equity $ 5,951,710 $ 6,498,736

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(in Thousands, except unit and per unit amounts)

Three Months Ended December 31,

Nine Months Ended December 31,

2020

2019

2020

2019

REVENUES:

Crude Oil Logistics

$

485,289

$

690,989

$

1,228,169

$

2,048,301

Water Solutions

98,925

121,607

275,668

294,639

Liquids and Refined Products

877,491

1,413,653

1,969,813

3,559,017

Other

314

280

942

799

Total Revenues

1,462,019

2,226,529

3,474,592

5,902,756

COST OF SALES:

Crude Oil Logistics

448,933

628,443

1,053,261

1,847,382

Water Solutions

3,280

14,004

8,559

4,701

Liquids and Refined Products

826,211

1,292,588

1,857,633

3,361,185

Other

455

437

1,363

1,337

Total Cost of Sales

1,278,879

1,935,472

2,920,816

5,214,605

OPERATING COSTS AND EXPENSES:

Operating

61,427

94,412

182,468

230,610

General and administrative

16,044

29,150

50,677

93,400

Depreciation and amortization

78,200

73,726

249,655

190,593

Loss (gain) on disposal or impairment of assets, net

373,776

(12,626

)

391,752

(10,482

)

Revaluation of liabilities

-

10,000

-

10,000

Operating (Loss) Income

(346,307

)

96,395

(320,776

)

174,030

OTHER INCOME (EXPENSE):

Equity in earnings of unconsolidated entities

344

534

1,134

277

Interest expense

(47,252

)

(46,920

)

(138,148

)

(131,814

)

Gain on early extinguishment of liabilities, net

11,190

-

44,292

-

Other income (expense), net

440

(226

)

3,060

967

(Loss) Income From Continuing Operations Before Income Taxes

(381,585

)

49,783

(410,438

)

43,460

INCOME TAX BENEFIT (EXPENSE)

1,162

(677

)

2,237

(996

)

(Loss) Income From Continuing Operations

(380,423

)

49,106

(408,201

)

42,464

Loss From Discontinued Operations, net of Tax

(107

)

(6,115

)

(1,746

)

(192,800

)

Net (Loss) Income

(380,530

)

42,991

(409,947

)

(150,336

)

LESS: NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS

34

166

(185

)

563

NET (LOSS) INCOME ATTRIBUTABLE TO NGL ENERGY PARTNERS LP

$

(380,496

)

$

43,157

$

(410,132

)

$

(149,773

)

NET (LOSS) INCOME FROM CONTINUING OPERATIONS ALLOCATED TO COMMON UNITHOLDERS

$

(403,755

)

$

28,895

$

(477,503

)

$

(123,792

)

NET LOSS FROM DISCONTINUED OPERATIONS ALLOCATED TO COMMON UNITHOLDERS

$

(107

)

$

(6,109

)

$

(1,744

)

$

(192,607

)

NET (LOSS) INCOME ALLOCATED TO COMMON UNITHOLDERS

$

(403,862

)

$

22,786

$

(479,247

)

$

(316,399

)

BASIC (LOSS) INCOME PER COMMON UNIT

(Loss) Income From Continuing Operations

$

(3.13

)

$

0.23

$

(3.71

)

$

(0.97

)

Loss From Discontinued Operations, net of Tax

$

-

$

(0.05

)

$

(0.01

)

$

(1.52

)

Net (Loss) Income

$

(3.13

)

$

0.18

$

(3.72

)

$

(2.49

)

DILUTED (LOSS) INCOME PER COMMON UNIT

(Loss) Income From Continuing Operations

$

(3.13

)

$

0.22

$

(3.71

)

$

(0.97

)

Loss From Discontinued Operations, net of Tax

$

-

$

(0.05

)

$

(0.01

)

$

(1.52

)

Net (Loss) Income

$

(3.13

)

$

0.17

$

(3.72

)

$

(2.49

)

BASIC WEIGHTED AVERAGE COMMON UNITS OUTSTANDING

128,991,414

128,201,369

128,845,214

127,026,510

DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING

128,991,414

129,358,590

128,845,214

127,026,510

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(in Thousands, except unit and per unit amounts)

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

2020 2019 2020 2019

REVENUES:

Crude Oil $ 485,289 $ 690,989 $ 1,228,169 $ 2,048,301 Logistics

Water 98,925 121,607 275,668 294,639 Solutions

Liquids andRefined 877,491 1,413,653 1,969,813 3,559,017 Products

Other 314 280 942 799

Total Revenues 1,462,019 2,226,529 3,474,592 5,902,756

COST OF SALES:

Crude Oil 448,933 628,443 1,053,261 1,847,382 Logistics

Water 3,280 14,004 8,559 4,701 Solutions

Liquids andRefined 826,211 1,292,588 1,857,633 3,361,185 Products

Other 455 437 1,363 1,337

Total Cost of 1,278,879 1,935,472 2,920,816 5,214,605 Sales

OPERATINGCOSTS AND EXPENSES:

Operating 61,427 94,412 182,468 230,610

General and 16,044 29,150 50,677 93,400 administrative

Depreciationand 78,200 73,726 249,655 190,593 amortization

Loss (gain) ondisposal or 373,776 (12,626 ) 391,752 (10,482 ) impairment ofassets, net

Revaluation of - 10,000 - 10,000 liabilities

Operating (346,307 ) 96,395 (320,776 ) 174,030 (Loss) Income

OTHER INCOME (EXPENSE):

Equity inearnings of 344 534 1,134 277 unconsolidatedentities

Interest (47,252 ) (46,920 ) (138,148 ) (131,814 ) expense

Gain on earlyextinguishmentof 11,190 - 44,292 - liabilities,net

Other income 440 (226 ) 3,060 967 (expense), net

(Loss) IncomeFromContinuing (381,585 ) 49,783 (410,438 ) 43,460 OperationsBefore IncomeTaxes

INCOME TAXBENEFIT 1,162 (677 ) 2,237 (996 ) (EXPENSE)

(Loss) IncomeFrom (380,423 ) 49,106 (408,201 ) 42,464 ContinuingOperations

Loss FromDiscontinued (107 ) (6,115 ) (1,746 ) (192,800 ) Operations,net of Tax

Net (Loss) (380,530 ) 42,991 (409,947 ) (150,336 ) Income

LESS: NET LOSS(INCOME)ATTRIBUTABLE 34 166 (185 ) 563 TONONCONTROLLINGINTERESTS

NET (LOSS)INCOMEATTRIBUTABLE $ (380,496 ) $ 43,157 $ (410,132 ) $ (149,773 ) TO NGL ENERGYPARTNERS LP

NET (LOSS)INCOME FROMCONTINUINGOPERATIONS $ (403,755 ) $ 28,895 $ (477,503 ) $ (123,792 ) ALLOCATED TOCOMMONUNITHOLDERS

NET LOSS FROMDISCONTINUEDOPERATIONS $ (107 ) $ (6,109 ) $ (1,744 ) $ (192,607 ) ALLOCATED TOCOMMONUNITHOLDERS

NET (LOSS)INCOMEALLOCATED TO $ (403,862 ) $ 22,786 $ (479,247 ) $ (316,399 ) COMMONUNITHOLDERS

BASIC (LOSS)INCOME PER COMMON UNIT

(Loss) IncomeFrom $ (3.13 ) $ 0.23 $ (3.71 ) $ (0.97 ) ContinuingOperations

Loss FromDiscontinued $ - $ (0.05 ) $ (0.01 ) $ (1.52 ) Operations,net of Tax

Net (Loss) $ (3.13 ) $ 0.18 $ (3.72 ) $ (2.49 ) Income

DILUTED (LOSS)INCOME PER COMMON UNIT

(Loss) IncomeFrom $ (3.13 ) $ 0.22 $ (3.71 ) $ (0.97 ) ContinuingOperations

Loss FromDiscontinued $ - $ (0.05 ) $ (0.01 ) $ (1.52 ) Operations,net of Tax

Net (Loss) $ (3.13 ) $ 0.17 $ (3.72 ) $ (2.49 ) Income

BASIC WEIGHTEDAVERAGE COMMON 128,991,414 128,201,369 128,845,214 127,026,510 UNITSOUTSTANDING

DILUTEDWEIGHTEDAVERAGE COMMON 128,991,414 129,358,590 128,845,214 127,026,510 UNITSOUTSTANDING

EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW RECONCILIATION

(Unaudited)

The following table reconciles NGL's net (loss) income to NGL's EBITDA, Adjusted EBITDA and Distributable Cash Flow:

EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW RECONCILIATION

(Unaudited)

The following table reconciles NGL's net (loss) income to NGL's EBITDA,Adjusted EBITDA and Distributable Cash Flow:

Three Months Ended December 31,

Nine Months Ended December 31,

2020

2019

2020

2019

(in thousands)

Net (loss) income

$

(380,530

)

$

42,991

$

(409,947

)

$

(150,336

)

Less: Net loss (income) attributable to noncontrolling interests

34

166

(185

)

563

Net (loss) income attributable to NGL Energy Partners LP

(380,496

)

43,157

(410,132

)

(149,773

)

Interest expense

47,253

46,946

138,159

131,969

Income tax (benefit) expense

(1,163

)

676

(2,291

)

1,015

Depreciation and amortization

77,531

72,939

247,555

191,049

EBITDA

(256,875

)

163,718

(26,709

)

174,260

Net unrealized losses on derivatives

16,529

16,787

47,657

7,851

Inventory valuation adjustment (1)

(786

)

(370

)

1,393

(25,555

)

Lower of cost or net realizable value adjustments

321

(646

)

(33,213

)

(2,465

)

Loss (gain) on disposal or impairment of assets, net

373,777

(4,837

)

392,924

171,757

Gain on early extinguishment of liabilities, net

(11,190

)

-

(44,292

)

-

Equity-based compensation expense (2)

1,120

2,213

5,678

27,209

Acquisition expense (3)

589

11,419

915

18,595

Revaluation of liabilities (4)

-

10,000

-

10,000

Other (5)

1,448

4,026

9,049

10,681

Adjusted EBITDA

$

124,933

$

202,310

$

353,402

$

392,333

Adjusted EBITDA - Discontinued Operations (6)

$

(107

)

$

1,799

$

(591

)

$

(35,362

)

Adjusted EBITDA - Continuing Operations

$

125,040

$

200,511

$

353,993

$

427,695

Less: Cash interest expense (7)

43,993

43,919

127,960

124,406

Less: Income tax (benefit) expense

(1,162

)

676

(2,237

)

995

Less: Maintenance capital expenditures

6,269

16,964

22,267

50,354

Less: Preferred unit distributions paid

23,770

12,612

53,908

31,484

Less: Other (8)

9

515

9

642

Distributable Cash Flow - Continuing Operations

$

52,161

$

125,825

$

152,086

$

219,814

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

2020 2019 2020 2019

(in thousands)

Net (loss) $ (380,530 ) $ 42,991 $ (409,947 ) $ (150,336 ) income

Less: Net loss(income)attributable 34 166 (185 ) 563 tononcontrollinginterests

Net (loss)incomeattributable (380,496 ) 43,157 (410,132 ) (149,773 ) to NGL EnergyPartners LP

Interest 47,253 46,946 138,159 131,969 expense

Income tax(benefit) (1,163 ) 676 (2,291 ) 1,015 expense

Depreciationand 77,531 72,939 247,555 191,049 amortization

EBITDA (256,875 ) 163,718 (26,709 ) 174,260

Net unrealizedlosses on 16,529 16,787 47,657 7,851 derivatives

Inventoryvaluation (786 ) (370 ) 1,393 (25,555 ) adjustment (1)

Lower of costor netrealizable 321 (646 ) (33,213 ) (2,465 ) valueadjustments

Loss (gain) ondisposal or 373,777 (4,837 ) 392,924 171,757 impairment ofassets, net

Gain on earlyextinguishmentof (11,190 ) - (44,292 ) - liabilities,net

Equity-basedcompensation 1,120 2,213 5,678 27,209 expense (2)

Acquisition 589 11,419 915 18,595 expense (3)

Revaluation ofliabilities - 10,000 - 10,000 (4)

Other (5) 1,448 4,026 9,049 10,681

Adjusted $ 124,933 $ 202,310 $ 353,402 $ 392,333 EBITDA

AdjustedEBITDA - $ (107 ) $ 1,799 $ (591 ) $ (35,362 ) DiscontinuedOperations (6)

AdjustedEBITDA - $ 125,040 $ 200,511 $ 353,993 $ 427,695 ContinuingOperations

Less: Cashinterest 43,993 43,919 127,960 124,406 expense (7)

Less: Incometax (benefit) (1,162 ) 676 (2,237 ) 995 expense

Less:Maintenance 6,269 16,964 22,267 50,354 capitalexpenditures

Less:Preferred unit 23,770 12,612 53,908 31,484 distributionspaid

Less: Other 9 515 9 642 (8)

DistributableCash Flow - $ 52,161 $ 125,825 $ 152,086 $ 219,814 ContinuingOperations

(1)

Amount reflects the difference between the market value of the inventory at the balance sheet date and its cost, adjusted for the impact of seasonal market movements related to our base inventory and the related hedge position. See "Non-GAAP Financial Measures" section above for a further discussion.

(2)

Equity-based compensation expense in the table above may differ from equity-based compensation expense reported in the footnotes to our unaudited condensed consolidated financial statements included in the Partnership's Quarterly Report on Form 10-Q for the quarter ended December 31, 2020. Amounts reported in the table above include expense accruals for bonuses expected to be paid in common units, whereas the amounts reported in the footnotes to our unaudited condensed consolidated financial statements only include expenses associated with equity-based awards that have been formally granted.

(3)

Amounts represent expenses we incurred related to legal and advisory costs associated with acquisitions, including Hillstone during the three months ended December 31, 2019, and Mesquite and Hillstone during the nine months ended December 31, 2019.

(4)

Amounts for the three months and nine months ended December 31, 2019 represent the non-cash valuation adjustment of our contingent consideration liability issued by us as part of our acquisition of Mesquite.

(5)

Amounts for the three months and nine months ended December 31, 2020 and 2019 represent non-cash operating expenses related to our Grand Mesa Pipeline, unrealized losses on marketable securities and accretion expense for asset retirement obligations.

(6)

Amounts include the operations of TPSL, Gas Blending and Mid-Con.

(7)

Amounts represent interest expense payable in cash for the period presented, excluding changes in the accrued interest balance.

(8)

Amounts represents cash paid to settle asset retirement obligations.

ADJUSTED EBITDA RECONCILIATION BY SEGMENT

Amount reflects the difference between the market value of the inventory at the balance sheet date and its cost, adjusted for the impact of(1) seasonal market movements related to our base inventory and the related hedge position. See "Non-GAAP Financial Measures" section above for a further discussion.

Equity-based compensation expense in the table above may differ from equity-based compensation expense reported in the footnotes to our unaudited condensed consolidated financial statements included in the Partnership's Quarterly Report on Form 10-Q for the quarter ended(2) December 31, 2020. Amounts reported in the table above include expense accruals for bonuses expected to be paid in common units, whereas the amounts reported in the footnotes to our unaudited condensed consolidated financial statements only include expenses associated with equity-based awards that have been formally granted.

Amounts represent expenses we incurred related to legal and advisory(3) costs associated with acquisitions, including Hillstone during the three months ended December 31, 2019, and Mesquite and Hillstone during the nine months ended December 31, 2019.

Amounts for the three months and nine months ended December 31, 2019(4) represent the non-cash valuation adjustment of our contingent consideration liability issued by us as part of our acquisition of Mesquite.

Amounts for the three months and nine months ended December 31, 2020 and(5) 2019 represent non-cash operating expenses related to our Grand Mesa Pipeline, unrealized losses on marketable securities and accretion expense for asset retirement obligations.

(6) Amounts include the operations of TPSL, Gas Blending and Mid-Con.

(7) Amounts represent interest expense payable in cash for the period presented, excluding changes in the accrued interest balance.

(8) Amounts represents cash paid to settle asset retirement obligations.

ADJUSTED EBITDA RECONCILIATION BY SEGMENT

Three Months Ended December 31, 2020

Discontinued Liquids Operations Crude Oil Water and Corporate Continuing (TPSL, Consolidated Logistics Solutions Refined and Other Operations Mid-Con, Products Gas Blending)

(in thousands)

Operating $ (382,192) $ 15,821 $ 32,438 $ (12,374) $ (346,307) $ - $ (346,307) (loss) income

Depreciationand 16,513 53,327 6,976 1,384 78,200 - 78,200 amortization

Amortizationrecorded to - - 77 - 77 - 77 cost of sales

Net unrealizedlosses on 7,878 5,800 2,851 - 16,529 - 16,529 derivatives

Inventoryvaluation - - (802) - (802) - (802) adjustment

Lower of costor netrealizable (166) - 502 - 336 - 336 valueadjustments

Loss (gain) ondisposal or 383,251 (9,967) (43) 535 373,776 - 373,776 impairment ofassets, net

Equity-basedcompensation - - - 1,120 1,120 - 1,120 expense

Acquisition - 4 - 585 589 - 589 expense

Other income, 2 1 341 96 440 - 440 net

AdjustedEBITDAattributable - 573 3 (16) 560 - 560 tounconsolidatedentities

AdjustedEBITDAattributable - (389) (544) - (933) - (933) tononcontrollinginterest

Other 1,046 384 25 - 1,455 - 1,455

Discontinued - - - - - (107) (107) operations

Adjusted $ 26,332 $ 65,554 $ 41,824 $ (8,670) $ 125,040 $ (107) $ 124,933 EBITDA

Three Months Ended December 31, 2019

Crude OilLogistics

WaterSolutions

Liquids andRefined Products

Corporateand Other

ContinuingOperations

Discontinued Operations(TPSL, Mid-Con, Gas Blending)

Consolidated

(in thousands)

Operating income (loss)

$

28,696

$

(583

)

$

89,038

$

(20,756

)

$

96,395

$

-

$

96,395

Depreciation and amortization

17,950

48,074

6,943

759

73,726

-

73,726

Amortization recorded to cost of sales

-

-

86

-

86

-

86

Net unrealized losses (gains) on derivatives

6,060

11,924

(1,197

)

-

16,787

-

16,787

Inventory valuation adjustment

-

-

(2,099

)

-

(2,099

)

-

(2,099

)

Lower of cost or net realizable value adjustments

-

-

(18

)

-

(18

)

-

(18

)

Gain on disposal or impairment of assets, net

(182

)

(12,176

)

(26

)

(242

)

(12,626

)

-

(12,626

)

Equity-based compensation expense

-

-

-

2,213

2,213

-

2,213

Acquisition expense

-

3,967

-

7,452

11,419

-

11,419

Other income (expense), net

64

(450

)

41

119

(226

)

-

(226

)

Adjusted EBITDA attributable to unconsolidated entities

-

685

17

(34

)

668

-

668

Adjusted EBITDA attributable to noncontrolling interest

-

(203

)

(616

)

-

(819

)

-

(819

)

Revaluation of liabilities

-

10,000

-

-

10,000

-

10,000

Intersegment transactions (1)

-

-

979

-

979

-

979

Other

2,987

976

63

-

4,026

-

4,026

Discontinued operations

-

-

-

-

-

1,799

1,799

Adjusted EBITDA

$

55,575

$

62,214

$

93,211

$

(10,489

)

$

200,511

$

1,799

$

202,310

Three Months Ended December 31, 2019

Discontinued Liquids and Operations Crude Oil Water Refined Corporate Continuing (TPSL, Consolidated Logistics Solutions Products and Other Operations Mid-Con, Gas Blending)

(in thousands)

Operating $ 28,696 $ (583 ) $ 89,038 $ (20,756 ) $ 96,395 $ - $ 96,395 income (loss)

Depreciationand 17,950 48,074 6,943 759 73,726 - 73,726 amortization

Amortizationrecorded to - - 86 - 86 - 86 cost of sales

Net unrealizedlosses (gains) 6,060 11,924 (1,197 ) - 16,787 - 16,787 on derivatives

Inventoryvaluation - - (2,099 ) - (2,099 ) - (2,099 ) adjustment

Lower of costor netrealizable - - (18 ) - (18 ) - (18 ) valueadjustments

Gain ondisposal or (182 ) (12,176 ) (26 ) (242 ) (12,626 ) - (12,626 ) impairment ofassets, net

Equity-basedcompensation - - - 2,213 2,213 - 2,213 expense

Acquisition - 3,967 - 7,452 11,419 - 11,419 expense

Other income 64 (450 ) 41 119 (226 ) - (226 ) (expense), net

AdjustedEBITDAattributable - 685 17 (34 ) 668 - 668 tounconsolidatedentities

AdjustedEBITDAattributable - (203 ) (616 ) - (819 ) - (819 ) tononcontrollinginterest

Revaluation of - 10,000 - - 10,000 - 10,000 liabilities

Intersegmenttransactions - - 979 - 979 - 979 (1)

Other 2,987 976 63 - 4,026 - 4,026

Discontinued - - - - - 1,799 1,799 operations

Adjusted $ 55,575 $ 62,214 $ 93,211 $ (10,489 ) $ 200,511 $ 1,799 $ 202,310 EBITDA

Nine Months Ended December 31, 2020

Crude OilLogistics

WaterSolutions

Liquids andRefined Products

Corporateand Other

ContinuingOperations

Discontinued Operations(TPSL, Mid-Con, Gas Blending)

Consolidated

(in thousands)

Operating (loss) income

$

(310,633)

$

(13,503)

$

51,338

$

(47,978)

(320,776)

$

-

$

(320,776)

Depreciation and amortization

50,540

173,680

22,158

3,277

249,655

-

249,655

Amortization recorded to cost of sales

-

-

230

-

230

-

230

Net unrealized losses on derivatives

19,199

23,525

4,933

-

47,657

-

47,657

Inventory valuation adjustment

-

-

1,399

-

1,399

-

1,399

Lower of cost or net realizable value adjustments

(29,245)

-

(3,974)

-

(33,219)

-

(33,219)

Loss (gain) on disposal or impairment of assets, net

384,391

(3,415)

4

10,772

391,752

-

391,752

Equity-based compensation expense

-

-

-

5,678

5,678

-

5,678

Acquisition expense

-

17

-

898

915

-

915

Other income, net

1,515

259

1,004

282

3,060

-

3,060

Adjusted EBITDA attributable to unconsolidated entities

-

1,883

(11)

(143)

1,729

-

1,729

Adjusted EBITDA attributable to noncontrolling interest

-

(1,317)

(1,816)

-

(3,133)

-

(3,133)

Intersegment transactions (1)

-

-

(27)

-

(27)

-

(27)

Other

6,600

2,398

75

-

9,073

-

9,073

Discontinued operations

-

-

-

-

-

(591)

(591)

Adjusted EBITDA

$

122,367

$

183,527

$

75,313

$

(27,214)

$

353,993

$

(591)

$

353,402

Nine Months Ended December 31, 2020

Discontinued Liquids Operations Crude Oil Water and Corporate Continuing (TPSL, Consolidated Logistics Solutions Refined and Other Operations Mid-Con, Products Gas Blending)

(in thousands)

Operating $ (310,633) $ (13,503) $ 51,338 $ (47,978) (320,776) $ - $ (320,776) (loss) income

Depreciationand 50,540 173,680 22,158 3,277 249,655 - 249,655 amortization

Amortizationrecorded to - - 230 - 230 - 230 cost of sales

Net unrealizedlosses on 19,199 23,525 4,933 - 47,657 - 47,657 derivatives

Inventoryvaluation - - 1,399 - 1,399 - 1,399 adjustment

Lower of costor netrealizable (29,245) - (3,974) - (33,219) - (33,219) valueadjustments

Loss (gain) ondisposal or 384,391 (3,415) 4 10,772 391,752 - 391,752 impairment ofassets, net

Equity-basedcompensation - - - 5,678 5,678 - 5,678 expense

Acquisition - 17 - 898 915 - 915 expense

Other income, 1,515 259 1,004 282 3,060 - 3,060 net

AdjustedEBITDAattributable - 1,883 (11) (143) 1,729 - 1,729 tounconsolidatedentities

AdjustedEBITDAattributable - (1,317) (1,816) - (3,133) - (3,133) tononcontrollinginterest

Intersegmenttransactions - - (27) - (27) - (27) (1)

Other 6,600 2,398 75 - 9,073 - 9,073

Discontinued - - - - - (591) (591) operations

Adjusted $ 122,367 $ 183,527 $ 75,313 $ (27,214) $ 353,993 $ (591) $ 353,402 EBITDA

Nine Months Ended December 31, 2019

Crude OilLogistics

WaterSolutions

Liquids andRefined Products

Corporateand Other

ContinuingOperations

Discontinued Operations(TPSL, Mid-Con, Gas Blending)

Consolidated

(in thousands)

Operating income (loss)

$

101,018

$

34,380

$

113,207

$

(74,575)

$

174,030

$

-

$

174,030

Depreciation and amortization

53,228

114,066

21,034

2,265

190,593

-

190,593

Amortization recorded to cost of sales

-

-

262

-

262

-

262

Net unrealized losses on derivatives

76

5,887

1,888

-

7,851

-

7,851

Inventory valuation adjustment

-

-

(264)

-

(264)

-

(264)

Lower of cost or net realizable value adjustments

-

-

(1,489)

-

(1,489)

-

(1,489)

Gain on disposal or impairment of assets, net

(1,428)

(9,021)

(33)

-

(10,482)

-

(10,482)

Equity-based compensation expense

-

-

-

27,209

27,209

-

27,209

Acquisition expense

-

3,987

-

14,608

18,595

-

18,595

Other income (expense), net

103

(452)

41

1,275

967

-

967

Adjusted EBITDA attributable to unconsolidated entities

-

685

(5)

(170)

510

-

510

Adjusted EBITDA attributable to noncontrolling interest

-

(597)

(1,296)

-

(1,893)

-

(1,893)

Revaluation of liabilities

-

10,000

-

-

10,000

-

10,000

Intersegment transactions (1)

-

-

1,125

-

1,125

-

1,125

Other

9,284

1,247

150

-

10,681

-

10,681

Discontinued operations

-

-

-

-

-

(35,362)

(35,362)

Adjusted EBITDA

$

162,281

$

160,182

$

134,620

$

(29,388)

$

427,695

$

(35,362)

$

392,333

Nine Months Ended December 31, 2019

Discontinued Liquids and Operations Crude Oil Water Refined Corporate Continuing (TPSL, Consolidated Logistics Solutions Products and Other Operations Mid-Con, Gas Blending)

(in thousands)

Operating $ 101,018 $ 34,380 $ 113,207 $ (74,575) $ 174,030 $ - $ 174,030 income (loss)

Depreciationand 53,228 114,066 21,034 2,265 190,593 - 190,593 amortization

Amortizationrecorded to - - 262 - 262 - 262 cost of sales

Net unrealizedlosses on 76 5,887 1,888 - 7,851 - 7,851 derivatives

Inventoryvaluation - - (264) - (264) - (264) adjustment

Lower of costor netrealizable - - (1,489) - (1,489) - (1,489) valueadjustments

Gain ondisposal or (1,428) (9,021) (33) - (10,482) - (10,482) impairment ofassets, net

Equity-basedcompensation - - - 27,209 27,209 - 27,209 expense

Acquisition - 3,987 - 14,608 18,595 - 18,595 expense

Other income 103 (452) 41 1,275 967 - 967 (expense), net

AdjustedEBITDAattributable - 685 (5) (170) 510 - 510 tounconsolidatedentities

AdjustedEBITDAattributable - (597) (1,296) - (1,893) - (1,893) tononcontrollinginterest

Revaluation of - 10,000 - - 10,000 - 10,000 liabilities

Intersegmenttransactions - - 1,125 - 1,125 - 1,125 (1)

Other 9,284 1,247 150 - 10,681 - 10,681

Discontinued - - - - - (35,362) (35,362) operations

Adjusted $ 162,281 $ 160,182 $ 134,620 $ (29,388) $ 427,695 $ (35,362) $ 392,333 EBITDA

(1)

Amount reflects the transactions with TPSL, Mid-Con and Gas Blending that are eliminated in consolidation.

(1) Amount reflects the transactions with TPSL, Mid-Con and Gas Blending that are eliminated in consolidation.

OPERATIONAL DATA

(Unaudited)

Three Months Ended

Nine Months Ended

December 31,

December 31,

2020

2019

2020

2019

(in thousands, except per day amounts)

Crude Oil Logistics:

Crude oil sold (barrels)

10,733

11,217

30,203

32,929

Crude oil transported on owned pipelines (barrels)

6,368

12,202

26,836

34,913

Crude oil storage capacity - owned and leased (barrels) (1)

5,239

5,362

Crude oil inventory (barrels) (1)

1,019

866

Water Solutions:

Produced water processed (barrels per day)

Northern Delaware Basin (2)

1,032,335

845,817

939,085

788,630

Delaware Basin

183,790

279,074

188,691

271,469

Eagle Ford Basin

72,951

242,238

83,151

263,064

DJ Basin

96,383

162,456

114,256

167,178

Other Basins

26,503

55,800

28,262

62,724

Total

1,411,962

1,585,385

1,353,445

1,553,065

Solids processed (barrels per day)

1,433

6,132

1,396

5,779

Skim oil sold (barrels per day)

2,004

3,429

1,771

3,124

Liquids and Refined Products:

Refined products sold (gallons)

214,132

326,928

646,349

980,406

Propane sold (gallons)

381,590

468,332

886,572

975,782

Butane sold (gallons)

212,697

276,046

475,655

588,694

Other products sold (gallons)

122,645

169,092

351,591

475,586

Liquids and Refined Products storage capacity - owned and leased (gallons) (1)

426,962

405,281

Refined products inventory (gallons) (1)

1,190

5,208

Propane inventory (gallons) (1)

128,568

123,265

Butane inventory (gallons) (1)

31,847

50,867

Other products inventory (gallons) (1)

21,326

23,166

OPERATIONAL DATA

(Unaudited)

Three Months Ended Nine Months Ended

December 31, December 31,

2020 2019 2020 2019

(in thousands, except per day amounts)

Crude Oil Logistics:

Crude oil sold (barrels) 10,733 11,217 30,203 32,929

Crude oil transported on 6,368 12,202 26,836 34,913 owned pipelines (barrels)

Crude oil storagecapacity - owned and 5,239 5,362 leased (barrels) (1)

Crude oil inventory 1,019 866 (barrels) (1)



Water Solutions:

Produced water processed (barrels per day)

Northern Delaware Basin 1,032,335 845,817 939,085 788,630 (2)

Delaware Basin 183,790 279,074 188,691 271,469

Eagle Ford Basin 72,951 242,238 83,151 263,064

DJ Basin 96,383 162,456 114,256 167,178

Other Basins 26,503 55,800 28,262 62,724

Total 1,411,962 1,585,385 1,353,445 1,553,065

Solids processed (barrels 1,433 6,132 1,396 5,779 per day)

Skim oil sold (barrels 2,004 3,429 1,771 3,124 per day)



Liquids and Refined Products:

Refined products sold 214,132 326,928 646,349 980,406 (gallons)

Propane sold (gallons) 381,590 468,332 886,572 975,782

Butane sold (gallons) 212,697 276,046 475,655 588,694

Other products sold 122,645 169,092 351,591 475,586 (gallons)

Liquids and RefinedProducts storage capacity 426,962 405,281 - owned and leased(gallons) (1)

Refined products 1,190 5,208 inventory (gallons) (1)

Propane inventory 128,568 123,265 (gallons) (1)

Butane inventory 31,847 50,867 (gallons) (1)

Other products inventory 21,326 23,166 (gallons) (1)

(1) Information is presented as of December 31, 2020 and December 31, 2019, respectively.

Barrels per day of produced water processed by the assets acquired in the(2) Mesquite and Hillstone transaction are calculated by the number of days in which we owned the assets for the periods presented.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210209006222/en/

CONTACT: NGL Energy Partners LP Trey Karlovich, 918-481-1119 Chief Financial Officer and Executive Vice President Trey.Karlovich@nglep.com or Linda Bridges, 918-481-1119 Senior Vice President - Finance and Treasurer Linda.Bridges@nglep.com