Business Wire | Jun 4, 2021 12:41AM EDT

CORRECTING and REPLACING NGL Energy Partners LP Announces Fourth Quarter and Full Year Fiscal 2021 Financial Results

Jun. 04, 2021

TULSA, Okla.--(BUSINESS WIRE)--Jun. 04, 2021--Seventh paragraph (under Crude Oil Logistics), second sentence should read: During the three months ended March 31, 2021, financial volumes on the Grand Mesa Pipeline averaged approximately 66,000 barrels per day compared to 131,000 barrels per day during the prior year period, a decrease primarily due to the bankruptcy court's approved rejection of the Extraction transportation agreement. Winter storm Uri in February 2021 reduced not only volumes at the lease in all areas of our operations, including the DJ Basin, but also refinery demand due to outages on the United States Gulf Coast. (instead of During the three months ended March 31, 2021, financial volumes on the Grand Mesa Pipeline averaged approximately 131,000 barrels per day during the prior year period, a decrease primarily due to the bankruptcy court's approved rejection of the Extraction transportation agreement. Winter storm Uri in February 2021 reduced not only volumes at the lease in all areas of our operations, including the DJ Basin, but also refinery demand due to outages on the United States Gulf Coast.)

The updated release reads:

NGL ENERGY PARTNERS LP ANNOUNCES FOURTH QUARTER AND FULL YEAR FISCAL 2021 FINANCIAL RESULTS

NGL Energy Partners LP (NYSE:NGL) ("NGL," "our," "we," or the "Partnership") today reported its fourth quarter and full year fiscal 2021 results.

Highlights for the quarter and fiscal year ended March 31, 2021 include:

* Loss from continuing operations for the quarter ended March 31, 2021 of $229.2 million, including a loss of $63.1 million related to the early repayment of the Partnership's term loan facility, a one-time $40.0 million consent payment to the holders of the Partnership's Class D Preferred Units and a non-cash impairment charge of $84.3 million for certain inactive or underutilized saltwater disposal facilities * Loss from continuing operations of $637.4 million for Fiscal 2021, which includes the $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"), certain costs associated with the re-financing of our credit facility and term loan facility and the impairment of certain assets * Adjusted EBITDA from continuing operations for the fourth quarter of Fiscal 2021 of $94.3 million, compared to $161.8 million for the fourth quarter of Fiscal 2020, driven by lower volumes in each of our operating segments * Fiscal Year 2021 Adjusted EBITDA from continuing operations of $448.3 million compared to $589.5 million in the prior year * Completion of a private offering of $2.05 billion of 7.5% senior secured notes due 2026 ("2026 Secured Notes") and a new $500.0 million asset-based revolving credit facility ("ABL Facility") on February 4, 2021. These transactions significantly extended debt maturities as proceeds received were used to repay all outstanding amounts under the Partnership's previous $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. * Announced suspension of all common unit and preferred unit distributions until the Board of Directors of our general partner deems it prudent to resume distributions and such distributions are consistent with the terms of the Partnership's various debt agreements

"The Partnership is well positioned going into its Fiscal 2022, as crude prices, producer volumes and demand for commodities have all increased following a challenging Fiscal 2021. Our Water Solutions segment continues to drive the growth of the Partnership and we look to fully capitalize on our Delaware Basin platform in the coming year. We are excited about rising and stabilizing crude oil prices and the return of production growth in the DJ Basin and expect to see increased producer demand for capacity on our Grand Mesa Pipeline as well," stated Mike Krimbill, NGL's CEO. "Fiscal 2021 was significant for the Partnership as we successfully extended our debt maturities and improved liquidity in a difficult banking environment for energy companies and provided a secure platform from which the Partnership can operate going forward. Once again, we are looking forward to seeing increased utilization of our existing asset platform to deliver excess free cash flow for deleveraging and the eventual reinstatement of our distributions," 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

March 31, 2021 March 31, 2020

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

(in thousands)

Water Solutions $ (79,217 ) $ 57,979 $ (207,444 ) $ 72,140

Crude Oil Logistics 6,303 22,176 16,750 56,938

Liquids Logistics 19,103 26,467 29,204 47,424

Corporate and Other (16,166 ) (12,343 ) (15,872 ) (14,740 )

Total $ (69,977 ) $ 94,279 $ (177,362 ) $ 161,762

Water Solutions

The Partnership processed approximately 1.4 million barrels of water per day during the quarter ended March 31, 2021, a 17.6% decrease when compared to approximately 1.7 million barrels of water per day processed during the quarter ended March 31, 2020. This decrease was primarily due to lower development activity and production volumes through the past year along with the impact from winter storm Uri and the slower recovery of volumes in the Delaware Basin. The decline was partially offset by new produced water volumes received upon the completion and commencement of the Partnership's Poker Lake pipeline. The pipeline was successfully completed in October 2020 with capacity of over 400,000 barrels per day and connects into the Partnership's integrated Delaware Basin produced water pipeline infrastructure network.

Operating expenses in the Water Solutions segment decreased to $0.29 per barrel compared to $0.38 per barrel in the comparative quarter last year. This includes certain costs incurred in February 2021 related to winter storm Uri, combined with lower volumes. The Partnership has taken significant steps to reduce operating costs and continues to evaluate cost saving initiatives.

Crude Oil Logistics

Operating income for the fourth quarter of Fiscal 2021 decreased compared to the same quarter in Fiscal 2020 due to lower activity on our Grand Mesa Pipeline, revenues from which decreased by $19.1 million during the quarter ended March 31, 2021, compared to the quarter ended March 31, 2020. During the three months ended March 31, 2021, financial volumes on the Grand Mesa Pipeline averaged approximately 66,000 barrels per day compared to 131,000 barrels per day during the prior year period, a decrease primarily due to the bankruptcy court's approved rejection of the Extraction transportation agreement. Winter storm Uri in February 2021 reduced not only volumes at the lease in all areas of our operations, including the DJ Basin, but also refinery demand due to outages on the United States Gulf Coast. This was partially offset by an increase in prices during the fourth quarter of Fiscal 2021.

Liquids Logistics

Total product margin per gallon, excluding the impact of derivatives, was $0.060 for the quarter ended March 31, 2021 compared to $0.044 in the same quarter of the prior year. Liquids revenues increased due to increased commodity prices in the quarter ended March 31, 2021 as a result of winter storm Uri in February, which impacted the supply of natural gas liquids and refined products. Refined products volume sold decreased during the quarter ended March 31, 2021 and totaled approximately 188.4 million gallons, compared to 292.1 million gallons in the same period in the prior year, as demand for refined products has not fully rebounded from the pandemic. Butane volumes also continued to be impacted by a lack in demand. Propane volumes for the quarter ended March 31, 2021 were down approximately 5.0% from the same period last year due to less demand throughout the heating season in our core operating areas.

Capitalization and Liquidity

Total liquidity (cash plus available capacity on our revolving credit facility) was approximately $344.9 million as of March 31, 2021. The Partnership is in compliance with all of its debt covenants and has no significant current debt maturities before November 2023. The Partnership expects to generate excess cash flow in Fiscal 2022, which will be utilized to repay outstanding indebtedness and improve leverage.

Fourth Quarter Conference Call Information

A conference call to discuss NGL's results of operations is scheduled for 4:00 pm Central Time on Thursday, June 3, 2021. Analysts, investors, and other interested parties may access the conference call by dialing (800) 291-4083 and providing access code 7299585. An archived audio replay of the conference call will be available for 7 days beginning at 1:00 pm Central Time on June 4, 2021, which can be accessed by dialing (855) 859-2056 and providing access code 7299585.

NGL filed its Annual Report on Form 10-K for the year ended March 31, 2021 with the Securities and Exchange Commission after market on June 3, 2021. A copy of the Form 10-K can be found on the Partnership's website at www.nglenergypartners.com. Unitholders may also request, free of charge, a hard copy of our Form 10-K and our complete audited financial statements.

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 Logistics segment, as discussed below. EBITDA and Adjusted EBITDA should not be considered alternatives to net loss, loss 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 Logistics 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 Logistics 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, treats, recycles and disposes of produced water generated as part of the energy production process as well as transports, stores, markets and provides other logistics services for crude oil and liquid hydrocarbons.

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

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Unaudited Consolidated Balance Sheets

(in Thousands, except unit amounts)

March 31,

2021 2020

ASSETS

CURRENT ASSETS:

Cash and cash equivalents $ 4,829 $ 22,704

Accounts receivable-trade, net of allowance forexpected credit losses of $2,192 and $4,540, 725,943 566,834 respectively

Accounts receivable-affiliates 9,435 12,934

Inventories 158,467 69,634

Prepaid expenses and other current assets 109,164 101,981

Total current assets 1,007,838 774,087

PROPERTY, PLANT AND EQUIPMENT, net of accumulateddepreciation of $776,279 and $529,068, 2,706,853 2,851,555 respectively

GOODWILL 744,439 993,587

INTANGIBLE ASSETS, net of accumulatedamortization of $517,518 and $631,449, 1,262,613 1,612,480 respectively

INVESTMENTS IN UNCONSOLIDATED ENTITIES 22,719 23,182

OPERATING LEASE RIGHT-OF-USE ASSETS 152,146 180,708

OTHER NONCURRENT ASSETS 50,733 63,137

Total assets $ 5,947,341 $ 6,498,736

LIABILITIES AND EQUITY

CURRENT LIABILITIES:

Accounts payable-trade $ 679,868 $ 515,049

Accounts payable-affiliates 119 17,717

Accrued expenses and other payables 170,400 232,062

Advance payments received from customers 11,163 19,536

Current maturities of long-term debt 2,183 4,683

Operating lease obligations 47,070 56,776

Total current liabilities 910,803 845,823

LONG-TERM DEBT, net of debt issuance costs of$55,555 and $19,795, respectively, and current 3,319,030 3,144,848 maturities

OPERATING LEASE OBLIGATIONS 103,637 121,013

OTHER NONCURRENT LIABILITIES 114,615 114,079



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, (52,189 ) (51,390 )129,724 and 128,901 notional units, respectively

Limited partners, representing a 99.9% interest,129,593,939 and 128,771,715 common units issued 582,784 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 69,471 72,954

Total equity 948,159 1,735,690

Total liabilities and equity $ 5,947,341 $ 6,498,736

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Unaudited Consolidated Statements of Operations

(in Thousands, except unit and per unit amounts)

Three Months Ended March 31,

Year Ended March 31,

2021

2020

2021

2020

REVENUES:

Water Solutions

$

95,318

$

127,420

$

370,986

$

422,059

Crude Oil Logistics

493,467

501,466

1,721,636

2,549,767

Liquids Logistics

1,163,333

1,052,119

3,133,146

4,611,136

Other

313

239

1,255

1,038

Total Revenues

1,752,431

1,681,244

5,227,023

7,584,000

COST OF SALES:

Water Solutions

1,063

(38,571

)

9,622

(33,870

)

Crude Oil Logistics

462,732

446,571

1,515,993

2,293,953

Liquids Logistics

1,108,758

981,341

2,966,391

4,342,526

Other

453

437

1,816

1,774

Total Cost of Sales

1,573,006

1,389,778

4,493,822

6,604,383

OPERATING COSTS AND EXPENSES:

Operating

72,094

102,383

254,562

332,993

General and administrative

19,791

20,264

70,468

113,664

Depreciation and amortization

67,572

74,719

317,227

265,312

Loss on disposal or impairment of assets, net

83,684

272,268

475,436

261,786

Revaluation of liabilities

6,261

(806

)

6,261

9,194

Operating Loss

(69,977

)

(177,362

)

(390,753

)

(3,332

)

OTHER INCOME (EXPENSE):

Equity in earnings of unconsolidated entities

804

1,014

1,938

1,291

Interest expense

(60,651

)

(49,370

)

(198,799

)

(181,184

)

(Loss) gain on early extinguishment of liabilities, net

(60,984

)

1,341

(16,692

)

1,341

Other (expense) income, net

(39,563

)

717

(36,503

)

1,684

Loss From Continuing Operations Before Income Taxes

(230,371

)

(223,660

)

(640,809

)

(180,200

)

INCOME TAX BENEFIT (EXPENSE)

1,154

651

3,391

(345

)

Loss From Continuing Operations

(229,217

)

(223,009

)

(637,418

)

(180,545

)

Loss From Discontinued Operations, net of Tax

(23

)

(25,435

)

(1,769

)

(218,235

)

Net Loss

(229,240

)

(248,444

)

(639,187

)

(398,780

)

LESS: NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS

(447

)

1,210

(632

)

1,773

NET LOSS ATTRIBUTABLE TO NGL ENERGY PARTNERS LP

$

(229,687

)

$

(247,234

)

$

(639,819

)

$

(397,007

)

NET LOSS FROM CONTINUING OPERATIONS ALLOCATED TO COMMON UNITHOLDERS

$

(253,180

)

$

(243,454

)

$

(730,683

)

$

(367,246

)

NET LOSS FROM DISCONTINUED OPERATIONS ALLOCATED TO COMMON UNITHOLDERS

$

(23

)

$

(25,410

)

$

(1,767

)

$

(218,017

)

NET LOSS ALLOCATED TO COMMON UNITHOLDERS

$

(253,203

)

$

(268,864

)

$

(732,450

)

$

(585,263

)

BASIC (LOSS) INCOME PER COMMON UNIT

Loss From Continuing Operations

$

(1.96

)

$

(1.89

)

$

(5.67

)

$

(2.88

)

Loss From Discontinued Operations, net of Tax

$

-

$

(0.20

)

$

(0.01

)

$

(1.71

)

Net Loss

$

(1.96

)

$

(2.09

)

$

(5.68

)

$

(4.59

)

DILUTED (LOSS) INCOME PER COMMON UNIT

Loss From Continuing Operations

$

(1.96

)

$

(1.89

)

$

(5.67

)

$

(2.88

)

Loss From Discontinued Operations, net of Tax

$

-

$

(0.20

)

$

(0.01

)

$

(1.71

)

Net Loss

$

(1.96

)

$

(2.09

)

$

(5.68

)

$

(4.59

)

BASIC WEIGHTED AVERAGE COMMON UNITS OUTSTANDING

129,395,184

128,576,572

128,980,823

127,411,908

DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING

129,395,184

128,576,572

128,980,823

127,411,908

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Unaudited Consolidated Statements of Operations

(in Thousands, except unit and per unit amounts)

Three Months Ended March 31, Year Ended March 31,

2021 2020 2021 2020

REVENUES:

Water Solutions $ 95,318 $ 127,420 $ 370,986 $ 422,059

Crude Oil 493,467 501,466 1,721,636 2,549,767 Logistics

Liquids 1,163,333 1,052,119 3,133,146 4,611,136 Logistics

Other 313 239 1,255 1,038

Total Revenues 1,752,431 1,681,244 5,227,023 7,584,000

COST OF SALES:

Water Solutions 1,063 (38,571 ) 9,622 (33,870 )

Crude Oil 462,732 446,571 1,515,993 2,293,953 Logistics

Liquids 1,108,758 981,341 2,966,391 4,342,526 Logistics

Other 453 437 1,816 1,774

Total Cost of 1,573,006 1,389,778 4,493,822 6,604,383 Sales

OPERATING COSTS AND EXPENSES:

Operating 72,094 102,383 254,562 332,993

General and 19,791 20,264 70,468 113,664 administrative

Depreciationand 67,572 74,719 317,227 265,312 amortization

Loss ondisposal or 83,684 272,268 475,436 261,786 impairment ofassets, net

Revaluation of 6,261 (806 ) 6,261 9,194 liabilities

Operating Loss (69,977 ) (177,362 ) (390,753 ) (3,332 )

OTHER INCOME (EXPENSE):

Equity inearnings of 804 1,014 1,938 1,291 unconsolidatedentities

Interest (60,651 ) (49,370 ) (198,799 ) (181,184 )expense

(Loss) gain onearlyextinguishment (60,984 ) 1,341 (16,692 ) 1,341 of liabilities,net

Other (expense) (39,563 ) 717 (36,503 ) 1,684 income, net

Loss FromContinuingOperations (230,371 ) (223,660 ) (640,809 ) (180,200 )Before IncomeTaxes

INCOME TAXBENEFIT 1,154 651 3,391 (345 )(EXPENSE)

Loss FromContinuing (229,217 ) (223,009 ) (637,418 ) (180,545 )Operations

Loss FromDiscontinued (23 ) (25,435 ) (1,769 ) (218,235 )Operations, netof Tax

Net Loss (229,240 ) (248,444 ) (639,187 ) (398,780 )

LESS: NET(INCOME) LOSSATTRIBUTABLE TO (447 ) 1,210 (632 ) 1,773 NONCONTROLLINGINTERESTS

NET LOSSATTRIBUTABLE TO $ (229,687 ) $ (247,234 ) $ (639,819 ) $ (397,007 )NGL ENERGYPARTNERS LP

NET LOSS FROMCONTINUINGOPERATIONS $ (253,180 ) $ (243,454 ) $ (730,683 ) $ (367,246 )ALLOCATED TOCOMMONUNITHOLDERS

NET LOSS FROMDISCONTINUEDOPERATIONS $ (23 ) $ (25,410 ) $ (1,767 ) $ (218,017 )ALLOCATED TOCOMMONUNITHOLDERS

NET LOSSALLOCATED TO $ (253,203 ) $ (268,864 ) $ (732,450 ) $ (585,263 )COMMONUNITHOLDERS

BASIC (LOSS)INCOME PER COMMON UNIT

Loss FromContinuing $ (1.96 ) $ (1.89 ) $ (5.67 ) $ (2.88 )Operations

Loss FromDiscontinued $ - $ (0.20 ) $ (0.01 ) $ (1.71 )Operations, netof Tax

Net Loss $ (1.96 ) $ (2.09 ) $ (5.68 ) $ (4.59 )

DILUTED (LOSS)INCOME PER COMMON UNIT

Loss FromContinuing $ (1.96 ) $ (1.89 ) $ (5.67 ) $ (2.88 )Operations

Loss FromDiscontinued $ - $ (0.20 ) $ (0.01 ) $ (1.71 )Operations, netof Tax

Net Loss $ (1.96 ) $ (2.09 ) $ (5.68 ) $ (4.59 )

BASIC WEIGHTEDAVERAGE COMMON 129,395,184 128,576,572 128,980,823 127,411,908 UNITSOUTSTANDING

DILUTEDWEIGHTEDAVERAGE COMMON 129,395,184 128,576,572 128,980,823 127,411,908 UNITSOUTSTANDING

EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW RECONCILIATION

(Unaudited)

The following table reconciles NGL's net loss to NGL's EBITDA, Adjusted EBITDA and Distributable Cash Flow for the periods indicated:

Three Months Ended March 31,

Year Ended March 31,

2021

2020

2021

2020

(in thousands)

Net loss

$

(229,240

)

$

(248,444

)

$

(639,187

)

$

(398,780

)

Less: Net (income) loss attributable to noncontrolling interests

(447

)

1,210

(632

)

1,773

Net loss attributable to NGL Energy Partners LP

(229,687

)

(247,234

)

(639,819

)

(397,007

)

Interest expense

60,664

49,388

198,823

181,357

Income tax (benefit) expense

(1,153

)

(650

)

(3,444

)

365

Depreciation and amortization

66,921

74,098

314,476

265,147

EBITDA

(103,255

)

(124,398

)

(129,964

)

49,862

Net unrealized (gains) losses on derivatives

(291

)

(46,408

)

47,366

(38,557

)

Inventory valuation adjustment (1)

(169

)

(4,121

)

1,224

(29,676

)

Lower of cost or net realizable value adjustments

3,111

33,667

(30,102

)

31,202

Loss on disposal or impairment of assets, net

83,677

292,726

476,601

464,483

Loss (gain) on early extinguishment of liabilities, net

60,984

(1,341

)

16,692

(1,341

)

Equity-based compensation expense (2)

1,049

(699

)

6,727

26,510

Acquisition expense (3)

796

1,127

1,711

19,722

Revaluation of liabilities (4)

6,261

(806

)

6,261

9,194

Class D Preferred Unitholder consent fee (5)

40,000

-

40,000

-

Other (6)

2,086

5,107

11,135

15,788

Adjusted EBITDA

$

94,249

$

154,854

$

447,651

$

547,187

Adjusted EBITDA - Discontinued Operations (7)

$

(30

)

$

(6,908

)

$

(621

)

$

(42,270

)

Adjusted EBITDA - Continuing Operations

$

94,279

$

161,762

$

448,272

$

589,457

Less: Cash interest expense (8)

57,178

45,848

185,138

170,254

Less: Income tax (benefit) expense

(1,154

)

(650

)

(3,391

)

345

Less: Maintenance capital expenditures

6,520

10,999

28,787

61,353

Less: Preferred unit distributions paid

23,770

14,237

77,678

45,721

Less: Other (9)

(9

)

16

-

658

Distributable Cash Flow - Continuing Operations

$

7,974

$

91,312

$

160,060

$

311,126

EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW RECONCILIATION

(Unaudited)

The following table reconciles NGL's net loss to NGL's EBITDA, Adjusted EBITDAand Distributable Cash Flow for the periods indicated:

Three Months Ended March Year Ended March 31, 31,

2021 2020 2021 2020

(in thousands)

Net loss $ (229,240 ) $ (248,444 ) $ (639,187 ) $ (398,780 )

Less: Net (income)loss attributable (447 ) 1,210 (632 ) 1,773 to noncontrollinginterests

Net lossattributable to NGL (229,687 ) (247,234 ) (639,819 ) (397,007 )Energy Partners LP

Interest expense 60,664 49,388 198,823 181,357

Income tax (1,153 ) (650 ) (3,444 ) 365 (benefit) expense

Depreciation and 66,921 74,098 314,476 265,147 amortization

EBITDA (103,255 ) (124,398 ) (129,964 ) 49,862

Net unrealized(gains) losses on (291 ) (46,408 ) 47,366 (38,557 )derivatives

Inventory valuation (169 ) (4,121 ) 1,224 (29,676 )adjustment (1)

Lower of cost ornet realizable 3,111 33,667 (30,102 ) 31,202 value adjustments

Loss on disposal orimpairment of 83,677 292,726 476,601 464,483 assets, net

Loss (gain) onearly 60,984 (1,341 ) 16,692 (1,341 )extinguishment ofliabilities, net

Equity-basedcompensation 1,049 (699 ) 6,727 26,510 expense (2)

Acquisition expense 796 1,127 1,711 19,722 (3)

Revaluation of 6,261 (806 ) 6,261 9,194 liabilities (4)

Class D PreferredUnitholder consent 40,000 - 40,000 - fee (5)

Other (6) 2,086 5,107 11,135 15,788

Adjusted EBITDA $ 94,249 $ 154,854 $ 447,651 $ 547,187

Adjusted EBITDA -Discontinued $ (30 ) $ (6,908 ) $ (621 ) $ (42,270 )Operations (7)

Adjusted EBITDA -Continuing $ 94,279 $ 161,762 $ 448,272 $ 589,457 Operations

Less: Cash interest 57,178 45,848 185,138 170,254 expense (8)

Less: Income tax (1,154 ) (650 ) (3,391 ) 345 (benefit) expense

Less: Maintenancecapital 6,520 10,999 28,787 61,353 expenditures

Less: Preferredunit distributions 23,770 14,237 77,678 45,721 paid

Less: Other (9) (9 ) 16 - 658

Distributable CashFlow - Continuing $ 7,974 $ 91,312 $ 160,060 $ 311,126 Operations

(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. 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 consolidated financial statements included in the Partnership's Annual Report on Form 10-K for the year ended March 31, 2021. 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 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 Mesquite and Hillstone, along with amounts accrued related to the LCT Capital, LLC legal matter (as discussed in the footnotes to our consolidated financial statements included in the Partnership's Annual Report on Form 10-K for the year ended March 31, 2021).

(4)

Amounts for the three months ended March 31, 2021 and 2020 and year ended March 31, 2021 represent the non-cash valuation adjustment of contingent consideration liabilities, offset by the cash payments, related to royalty agreements acquired as part of acquisitions in our Water Solutions segment. Amount for the year ended March 31, 2020 represents the non-cash valuation adjustment of our contingent consideration liability issued by us as part of our acquisition of Mesquite (as discussed in the footnotes to our consolidated financial statements included in the Partnership's Annual Report on Form 10-K for the year ended March 31, 2021), partially offset by the non-cash valuation adjustment of contingent consideration liabilities, offset by the cash payments, related to royalty agreements acquired as part of acquisitions in our Water Solutions segment.

(5)

Represents the fee paid to the holders of the Class D Preferred Units to obtain their consent in order to complete the issuance of the 2026 Senior Secured Notes and the ABL Facility (as discussed in the footnotes to our consolidated financial statements included in the Partnership's Annual Report on Form 10-K for the year ended March 31, 2021).

(6)

Amounts for the three months and years ended March 31, 2021 and 2020 represent non-cash operating expenses related to our Grand Mesa Pipeline, unrealized losses on marketable securities and accretion expense for asset retirement obligations.

(7)

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

(8)

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

(9)

Amounts represent cash paid to settle asset retirement obligations.

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. 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 consolidated financial statements included in the Partnership's Annual(2) Report on Form 10-K for the year ended March 31, 2021. 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 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 costs associated with acquisitions, including Mesquite and Hillstone, along with(3) amounts accrued related to the LCT Capital, LLC legal matter (as discussed in the footnotes to our consolidated financial statements included in the Partnership's Annual Report on Form 10-K for the year ended March 31, 2021).

Amounts for the three months ended March 31, 2021 and 2020 and year ended March 31, 2021 represent the non-cash valuation adjustment of contingent consideration liabilities, offset by the cash payments, related to royalty agreements acquired as part of acquisitions in our Water Solutions segment. Amount for the year ended March 31, 2020 represents the non-cash(4) valuation adjustment of our contingent consideration liability issued by us as part of our acquisition of Mesquite (as discussed in the footnotes to our consolidated financial statements included in the Partnership's Annual Report on Form 10-K for the year ended March 31, 2021), partially offset by the non-cash valuation adjustment of contingent consideration liabilities, offset by the cash payments, related to royalty agreements acquired as part of acquisitions in our Water Solutions segment.

Represents the fee paid to the holders of the Class D Preferred Units to obtain their consent in order to complete the issuance of the 2026 Senior(5) Secured Notes and the ABL Facility (as discussed in the footnotes to our consolidated financial statements included in the Partnership's Annual Report on Form 10-K for the year ended March 31, 2021).

Amounts for the three months and years ended March 31, 2021 and 2020(6) represent non-cash operating expenses related to our Grand Mesa Pipeline, unrealized losses on marketable securities and accretion expense for asset retirement obligations.

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

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

(9) Amounts represent cash paid to settle asset retirement obligations.

ADJUSTED EBITDA RECONCILIATION BY SEGMENT

(Unaudited)

Three Months Ended March 31, 2021

Water Solutions

Crude Oil Logistics

Liquids Logistics

Corporate and Other

Continuing Operations

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

Consolidated

(in thousands)

Operating (loss) income

$

(79,217

)

$

6,303

$

19,103

$

(16,166

)

$

(69,977

)

$

-

$

(69,977

)

Depreciation and amortization

48,427

10,334

7,026

1,785

67,572

-

67,572

Amortization recorded to cost of sales

-

-

77

-

77

-

77

Net unrealized losses (gains) on derivatives

975

4,233

(5,499

)

-

(291

)

-

(291

)

Inventory valuation adjustment

-

-

(202

)

-

(202

)

-

(202

)

Lower of cost or net realizable value adjustments

-

(213

)

3,357

-

3,144

-

3,144

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

80,357

(248

)

3,346

229

83,684

-

83,684

Equity-based compensation expense

-

-

-

1,049

1,049

-

1,049

Acquisition expense

10

-

-

786

796

-

796

Other income (expense), net

7

50

297

(39,917

)

(39,563

)

-

(39,563

)

Adjusted EBITDA attributable to unconsolidated entities

1,136

-

8

(109

)

1,035

-

1,035

Adjusted EBITDA attributable to noncontrolling interest

(330

)

-

(1,071

)

-

(1,401

)

-

(1,401

)

Revaluation of liabilities

6,261

-

-

-

6,261

-

6,261

Class D Preferred Unitholder consent fee

-

-

-

40,000

40,000

-

40,000

Other

353

1,717

25

-

2,095

-

2,095

Discontinued operations

-

-

-

-

-

(30

)

(30

)

Adjusted EBITDA

$

57,979

$

22,176

$

26,467

$

(12,343

)

$

94,279

$

(30

)

$

94,249

ADJUSTED EBITDA RECONCILIATION BY SEGMENT

(Unaudited)

Three Months Ended March 31, 2021

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

(in thousands)

Operating $ (79,217 ) $ 6,303 $ 19,103 $ (16,166 ) $ (69,977 ) $ - $ (69,977 )(loss) income

Depreciationand 48,427 10,334 7,026 1,785 67,572 - 67,572 amortization

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

Net unrealizedlosses (gains) 975 4,233 (5,499 ) - (291 ) - (291 )on derivatives

Inventoryvaluation - - (202 ) - (202 ) - (202 )adjustment

Lower of costor netrealizable - (213 ) 3,357 - 3,144 - 3,144 valueadjustments

Loss (gain) ondisposal or 80,357 (248 ) 3,346 229 83,684 - 83,684 impairment ofassets, net

Equity-basedcompensation - - - 1,049 1,049 - 1,049 expense

Acquisition 10 - - 786 796 - 796 expense

Other income 7 50 297 (39,917 ) (39,563 ) - (39,563 )(expense), net

AdjustedEBITDAattributable 1,136 - 8 (109 ) 1,035 - 1,035 tounconsolidatedentities

AdjustedEBITDAattributable (330 ) - (1,071 ) - (1,401 ) - (1,401 )tononcontrollinginterest

Revaluation of 6,261 - - - 6,261 - 6,261 liabilities

Class DPreferred - - - 40,000 40,000 - 40,000 Unitholderconsent fee

Other 353 1,717 25 - 2,095 - 2,095

Discontinued - - - - - (30 ) (30 )operations

Adjusted $ 57,979 $ 22,176 $ 26,467 $ (12,343 ) $ 94,279 $ (30 ) $ 94,249 EBITDA

Three Months Ended March 31, 2020

Water Solutions

Crude Oil Logistics

Liquids Logistics

Corporate and Other

Continuing Operations

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

Consolidated

(in thousands)

Operating (loss) income

$

(207,444

)

$

16,750

$

29,204

$

(15,872

)

$

(177,362

)

$

-

$

(177,362

)

Depreciation and amortization

49,522

17,531

6,896

770

74,719

-

74,719

Amortization recorded to cost of sales

-

-

87

-

87

-

87

Net unrealized (gains) losses on derivatives

(35,748

)

(11,391

)

731

-

(46,408

)

-

(46,408

)

Inventory valuation adjustment

-

-

(1,886

)

-

(1,886

)

-

(1,886

)

Lower of cost or net realizable value adjustments

-

29,469

4,213

-

33,682

-

33,682

Loss on disposal or impairment of assets, net

264,306

284

7,678

-

272,268

-

272,268

Equity-based compensation expense

-

-

-

(699

)

(699

)

-

(699

)

Acquisition expense

92

-

-

1,035

1,127

-

1,127

Other income (expense), net

4

614

(20

)

119

717

-

717

Adjusted EBITDA attributable to unconsolidated entities

1,467

-

29

(93

)

1,403

-

1,403

Adjusted EBITDA attributable to noncontrolling interest

(613

)

-

(546

)

-

(1,159

)

-

(1,159

)

Revaluation of liabilities

(806

)

-

-

-

(806

)

-

(806

)

Intersegment transactions (1)

-

-

974

-

974

-

974

Other

1,360

3,681

64

-

5,105

-

5,105

Discontinued operations

-

-

-

-

-

(6,908

)

(6,908

)

Adjusted EBITDA

$

72,140

$

56,938

$

47,424

$

(14,740

)

$

161,762

$

(6,908

)

$

154,854

Three Months Ended March 31, 2020

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

(in thousands)

Operating $ (207,444 ) $ 16,750 $ 29,204 $ (15,872 ) $ (177,362 ) $ - $ (177,362 )(loss) income

Depreciationand 49,522 17,531 6,896 770 74,719 - 74,719 amortization

Amortizationrecorded to - - 87 - 87 - 87 cost of sales

Net unrealized(gains) losses (35,748 ) (11,391 ) 731 - (46,408 ) - (46,408 )on derivatives

Inventoryvaluation - - (1,886 ) - (1,886 ) - (1,886 )adjustment

Lower of costor netrealizable - 29,469 4,213 - 33,682 - 33,682 valueadjustments

Loss ondisposal or 264,306 284 7,678 - 272,268 - 272,268 impairment ofassets, net

Equity-basedcompensation - - - (699 ) (699 ) - (699 )expense

Acquisition 92 - - 1,035 1,127 - 1,127 expense

Other income 4 614 (20 ) 119 717 - 717 (expense), net

AdjustedEBITDAattributable 1,467 - 29 (93 ) 1,403 - 1,403 tounconsolidatedentities

AdjustedEBITDAattributable (613 ) - (546 ) - (1,159 ) - (1,159 )tononcontrollinginterest

Revaluation of (806 ) - - - (806 ) - (806 )liabilities

Intersegmenttransactions - - 974 - 974 - 974 (1)

Other 1,360 3,681 64 - 5,105 - 5,105

Discontinued - - - - - (6,908 ) (6,908 )operations

Adjusted $ 72,140 $ 56,938 $ 47,424 $ (14,740 ) $ 161,762 $ (6,908 ) $ 154,854 EBITDA

Year Ended March 31, 2021

Water Solutions

Crude Oil Logistics

Liquids Logistics

Corporate and Other

Continuing Operations

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

Consolidated

(in thousands)

Operating (loss) income

$

(92,720

)

$

(304,330

)

$

70,441

$

(64,144

)

$

(390,753

)

$

-

$

(390,753

)

Depreciation and amortization

222,107

60,874

29,184

5,062

317,227

-

317,227

Amortization recorded to cost of sales

-

-

307

-

307

-

307

Net unrealized losses (gains) on derivatives

24,500

23,432

(566

)

-

47,366

-

47,366

Inventory valuation adjustment

-

-

1,197

-

1,197

-

1,197

Lower of cost or net realizable value adjustments

-

(29,458

)

(617

)

-

(30,075

)

-

(30,075

)

Loss on disposal or impairment of assets, net

76,942

384,143

3,350

11,001

475,436

-

475,436

Equity-based compensation expense

-

-

-

6,727

6,727

-

6,727

Acquisition expense

27

-

-

1,684

1,711

-

1,711

Other income (expense), net

266

1,565

1,301

(39,635

)

(36,503

)

-

(36,503

)

Adjusted EBITDA attributable to unconsolidated entities

3,019

-

(3

)

(252

)

2,764

-

2,764

Adjusted EBITDA attributable to noncontrolling interest

(1,647

)

-

(2,887

)

-

(4,534

)

-

(4,534

)

Revaluation of liabilities

6,261

-

-

-

6,261

-

6,261

Class D Preferred Unitholder consent fee

-

-

-

40,000

40,000

-

40,000

Intersegment transactions (1)

-

-

(27

)

-

(27

)

-

(27

)

Other

2,751

8,317

100

-

11,168

-

11,168

Discontinued operations

-

-

-

-

-

(621

)

(621

)

Adjusted EBITDA

$

241,506

$

144,543

$

101,780

$

(39,557

)

$

448,272

$

(621

)

$

447,651

Year Ended March 31, 2021

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

(in thousands)

Operating $ (92,720 ) $ (304,330 ) $ 70,441 $ (64,144 ) $ (390,753 ) $ - $ (390,753 )(loss) income

Depreciationand 222,107 60,874 29,184 5,062 317,227 - 317,227 amortization

Amortizationrecorded to - - 307 - 307 - 307 cost of sales

Net unrealizedlosses (gains) 24,500 23,432 (566 ) - 47,366 - 47,366 on derivatives

Inventoryvaluation - - 1,197 - 1,197 - 1,197 adjustment

Lower of costor netrealizable - (29,458 ) (617 ) - (30,075 ) - (30,075 )valueadjustments

Loss ondisposal or 76,942 384,143 3,350 11,001 475,436 - 475,436 impairment ofassets, net

Equity-basedcompensation - - - 6,727 6,727 - 6,727 expense

Acquisition 27 - - 1,684 1,711 - 1,711 expense

Other income 266 1,565 1,301 (39,635 ) (36,503 ) - (36,503 )(expense), net

AdjustedEBITDAattributable 3,019 - (3 ) (252 ) 2,764 - 2,764 tounconsolidatedentities

AdjustedEBITDAattributable (1,647 ) - (2,887 ) - (4,534 ) - (4,534 )tononcontrollinginterest

Revaluation of 6,261 - - - 6,261 - 6,261 liabilities

Class DPreferred - - - 40,000 40,000 - 40,000 Unitholderconsent fee

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

Other 2,751 8,317 100 - 11,168 - 11,168

Discontinued - - - - - (621 ) (621 )operations

Adjusted $ 241,506 $ 144,543 $ 101,780 $ (39,557 ) $ 448,272 $ (621 ) $ 447,651 EBITDA

Year Ended March 31, 2020

Water Solutions

Crude Oil Logistics

Liquids Logistics

Corporate and Other

Continuing Operations

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

Consolidated

(in thousands)

Operating (loss) income

$

(173,064

)

$

117,768

$

142,411

$

(90,447

)

$

(3,332

)

$

-

$

(3,332

)

Depreciation and amortization

163,588

70,759

27,930

3,035

265,312

-

265,312

Amortization recorded to cost of sales

-

-

349

-

349

-

349

Net unrealized (gains) losses on derivatives

(29,861

)

(11,315

)

2,619

-

(38,557

)

-

(38,557

)

Inventory valuation adjustment

-

-

(2,150

)

-

(2,150

)

-

(2,150

)

Lower of cost or net realizable value adjustments

-

29,469

2,724

-

32,193

-

32,193

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

255,285

(1,144

)

7,645

-

261,786

-

261,786

Equity-based compensation expense

-

-

-

26,510

26,510

-

26,510

Acquisition expense

4,079

-

-

15,643

19,722

-

19,722

Other (expense) income, net

(448

)

717

21

1,394

1,684

-

1,684

Adjusted EBITDA attributable to unconsolidated entities

2,152

-

24

(263

)

1,913

-

1,913

Adjusted EBITDA attributable to noncontrolling interest

(1,210

)

-

(1,842

)

-

(3,052

)

-

(3,052

)

Revaluation of liabilities

9,194

-

-

-

9,194

-

9,194

Intersegment transactions (1)

-

-

2,099

-

2,099

-

2,099

Other

2,607

12,965

214

-

15,786

-

15,786

Discontinued operations

-

-

-

-

-

(42,270

)

(42,270

)

Adjusted EBITDA

$

232,322

$

219,219

$

182,044

$

(44,128

)

$

589,457

$

(42,270

)

$

547,187

Year Ended March 31, 2020

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

(in thousands)

Operating $ (173,064 ) $ 117,768 $ 142,411 $ (90,447 ) $ (3,332 ) $ - $ (3,332 )(loss) income

Depreciationand 163,588 70,759 27,930 3,035 265,312 - 265,312 amortization

Amortizationrecorded to - - 349 - 349 - 349 cost of sales

Net unrealized(gains) losses (29,861 ) (11,315 ) 2,619 - (38,557 ) - (38,557 )on derivatives

Inventoryvaluation - - (2,150 ) - (2,150 ) - (2,150 )adjustment

Lower of costor netrealizable - 29,469 2,724 - 32,193 - 32,193 valueadjustments

Loss (gain) ondisposal or 255,285 (1,144 ) 7,645 - 261,786 - 261,786 impairment ofassets, net

Equity-basedcompensation - - - 26,510 26,510 - 26,510 expense

Acquisition 4,079 - - 15,643 19,722 - 19,722 expense

Other(expense) (448 ) 717 21 1,394 1,684 - 1,684 income, net

AdjustedEBITDAattributable 2,152 - 24 (263 ) 1,913 - 1,913 tounconsolidatedentities

AdjustedEBITDAattributable (1,210 ) - (1,842 ) - (3,052 ) - (3,052 )tononcontrollinginterest

Revaluation of 9,194 - - - 9,194 - 9,194 liabilities

Intersegmenttransactions - - 2,099 - 2,099 - 2,099 (1)

Other 2,607 12,965 214 - 15,786 - 15,786

Discontinued - - - - - (42,270 ) (42,270 )operations

Adjusted $ 232,322 $ 219,219 $ 182,044 $ (44,128 ) $ 589,457 $ (42,270 ) $ 547,187 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

Year Ended

March 31,

March 31,

2021

2020

2021

2020

(in thousands, except per day amounts)

Water Solutions:

Produced water processed (barrels per day)

Delaware Basin (1)

1,212,453

1,294,750

1,148,582

1,170,158

Eagle Ford Basin

63,871

197,587

78,397

246,784

DJ Basin

101,116

158,159

111,016

164,936

Other Basins

21,210

47,594

26,596

61,091

Total

1,398,650

1,698,090

1,364,591

1,642,969

Solids processed (barrels per day)

1,104

5,449

1,324

5,697

Skim oil sold (barrels per day)

2,525

3,539

1,957

3,397

Crude Oil Logistics:

Crude oil sold (barrels)

8,146

9,870

38,349

42,799

Crude oil transported on owned pipelines (barrels)

5,961

10,971

32,797

45,884

Crude oil storage capacity - owned and leased (barrels) (2)

5,239

5,362

Crude oil inventory (barrels) (2)

1,201

1,111

Liquids Logistics:

Refined products sold (gallons)

188,368

292,140

834,717

1,272,546

Propane sold (gallons)

477,652

502,977

1,364,224

1,478,759

Butane sold (gallons)

179,601

225,834

655,256

814,528

Other products sold (gallons)

119,654

127,286

471,245

602,872

Natural gas liquids and refined products storage capacity - owned and leased (gallons) (2)

427,975

400,301

Refined products inventory (gallons) (2)

1,223

2,391

Propane inventory (gallons) (2)

51,026

57,221

Butane inventory (gallons) (2)

20,066

24,808

Other products inventory (gallons) (2)

19,195

26,126

OPERATIONAL DATA

(Unaudited)

Three Months Ended Year Ended

March 31, March 31,

2021 2020 2021 2020

(in thousands, except per day amounts)

Water Solutions:

Produced water processed (barrels per day)

Delaware Basin (1) 1,212,453 1,294,750 1,148,582 1,170,158

Eagle Ford Basin 63,871 197,587 78,397 246,784

DJ Basin 101,116 158,159 111,016 164,936

Other Basins 21,210 47,594 26,596 61,091

Total 1,398,650 1,698,090 1,364,591 1,642,969

Solids processed (barrels 1,104 5,449 1,324 5,697 per day)

Skim oil sold (barrels 2,525 3,539 1,957 3,397 per day)



Crude Oil Logistics:

Crude oil sold (barrels) 8,146 9,870 38,349 42,799

Crude oil transported on 5,961 10,971 32,797 45,884 owned pipelines (barrels)

Crude oil storagecapacity - owned and 5,239 5,362 leased (barrels) (2)

Crude oil inventory 1,201 1,111 (barrels) (2)



Liquids Logistics:

Refined products sold 188,368 292,140 834,717 1,272,546 (gallons)

Propane sold (gallons) 477,652 502,977 1,364,224 1,478,759

Butane sold (gallons) 179,601 225,834 655,256 814,528

Other products sold 119,654 127,286 471,245 602,872 (gallons)

Natural gas liquids andrefined products storage 427,975 400,301 capacity - owned andleased (gallons) (2)

Refined products 1,223 2,391 inventory (gallons) (2)

Propane inventory 51,026 57,221 (gallons) (2)

Butane inventory 20,066 24,808 (gallons) (2)

Other products inventory 19,195 26,126 (gallons) (2)

(1)

During the year ended March 31, 2020, barrels per day of produced water processed by the assets acquired in the Mesquite (acquired July 2, 2019) and Hillstone (acquired October 31, 2019) transactions are calculated by the number of days in which we owned the assets.

(2)

Information is presented as of March 31, 2021 and March 31, 2020, respectively.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210603006036/en/

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

CONTACT: or

CONTACT: Linda Bridges, 918-481-1119 Senior Vice President - Finance and Treasurer Linda.Bridges@nglep.com