TULSA, Okla.--(BUSINESS WIRE)--NGL Energy Partners LP (NYSE:NGL) (“NGL,” or the “Partnership”) announced today that NGL Water Solutions is commencing expansion of its Lea County Express Pipeline System from a capacity of 140,000 barrels of water per day to 340,000 barrels per day in 2024 (LEX II Expansion). The addition of a second large-diameter pipeline, disposal wells, and facilities will greatly expand the capabilities of NGL’s existing produced water super-system and create a significantly larger outle ...

TULSA, Okla.--(BUSINESS WIRE)--New Term Loan Facility NGL Energy Partners LP (NYSE: NGL) (“Partnership” or “NGL”), together with its wholly owned subsidiary NGL Energy Operating LLC (“NGL Energy Operating”), today announced plans to syndicate a new seven-year $700 million senior secured term loan facility (the “Term Loan Facility”). NGL Energy Operating will be the borrower under the Term Loan Facility. NGL Energy Operating expects to use the net proceeds of the Term Loan Facility, together with proceeds f ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 2024 was $176.2 million, up from $142.2 million in Q2 2023, driven largely by strong performance in Water Solutions [4] - The company is reaffirming full-year consolidated adjusted EBITDA guidance of over $645 million [6] Business Line Data and Key Metrics Changes - Water Solutions generated adjusted EBITDA of $140.4 million, a 34% increase compared to the same quarter in fiscal 2023, processing 2.44 million barrels per day, which is a 7.7% increase from the prior year [11] - Liquids Logistics adjusted EBITDA was $17.1 million for the quarter, compared to $16.5 million in Q2 2023, with strong butane blending season performance [18] - Crude Logistics adjusted EBITDA was $30.7 million, down from $32.9 million in Q2 2023, with average Grand Mesa volumes at 70,000 barrels per day [19] Market Data and Key Metrics Changes - The company has seen commodity price volatility and has entered into crude oil costless collars to hedge against oil price swings [4] - Propane volumes were impacted by lower demand due to warmer weather last year, but strong margins have been locked in for the winter months [10] Company Strategy and Development Direction - The company is increasing growth capital expenditures to $100 million from a previous guidance of $65 million, focusing on growth opportunities in the Delaware for Water Solutions [15] - The strategy to reduce absolute debt and leverage continues, with leverage decreasing from 6.11 times to 4.14 times year-over-year [16] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the DJ Basin's growth over the next 12 to 24 months, benefiting from the Grand Mesa Pipeline [5] - The company anticipates paying off the 25 unsecured notes by March 31, 2024, and expects to maintain strong liquidity entering the peak inventory build season for butane and propane [8][17] Other Important Information - The company has reduced absolute debt by approximately $680 million over the last 12 months [16] - Free cash flow will be directed to the balance sheet, with no expectation to reinstate dividends in the current fiscal year [22] Q&A Session Summary Question: Can you break out a sense for the improvement in water EBITDA over the next couple of quarters between volume and margin, specifically about margins? - Management indicated that while average volume remained flat, margins were strong compared to the first quarter, driven by decreasing operational expenses and increased fees based on demand, especially in the Delaware [30][31]

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Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-35172 NGL Energy Partners LP (Exact Name of Registrant as Specified in Its Charter) ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-35172 NGL Energy Partners LP (Exact Name of Registrant as Specified in Its Charter) (Sta ...

NGL Energy Partners LP (NYSE:NGL) Q4 2023 Earnings Conference Call May 31, 2023 5:30 PM ET Company Participants Brad Cooper - EVP & CFO Michael Krimbill - President, CEO, & Director Douglas White - EVP, NGL Water Solutions Conference Call Participants Patrick Fitzgerald - Robert W. Baird & Co. Tarek Hamid - JPMorgan Chase & Co. Jason Mandel - RBC Capital Markets Sunil Sibal - Seaport Research Partners Ned Baramov - Wells Fargo Securities Gregg Brody - Bank of America Merrill Lynch Operator Greetings. Welcom ...

PART I [Business](index=5&type=section&id=Item%201.%20Business) NGL Energy Partners LP is a diversified midstream energy partnership focused on water solutions, crude oil, and liquids logistics - NGL Energy Partners LP is a diversified midstream energy partnership with three main business segments: **Water Solutions**, **Crude Oil Logistics**, and **Liquids Logistics**[18](index=18&type=chunk) - The company has undertaken strategic actions to simplify its business mix, focusing on core areas with stable cash flows and improving its credit profile[19](index=19&type=chunk) - In February 2021, NGL closed a major debt refinancing, including **$2.05 billion in 7.5% senior secured notes** due 2026 and a new **$500.0 million ABL facility**, leading to the suspension of common and preferred unit distributions to strengthen the balance sheet[21](index=21&type=chunk)[22](index=22&type=chunk) [Business Segments Overview](index=5&type=section&id=Item%201.%20Business-Business%20Segments%20Overview) The partnership operates through three core segments: Water Solutions, Crude Oil Logistics, and Liquids Logistics Business Segments Description | Segment | Description | | :--- | :--- | | **Water Solutions** | Transports, treats, recycles, and disposes of produced and flowback water from crude oil and natural gas production. Also sells recovered skim oil | | **Crude Oil Logistics** | Purchases crude oil from producers, transports it to refineries or for resale, and provides storage and terminaling services | | **Liquids Logistics** | Conducts supply operations for NGLs, refined petroleum products, and biodiesel to commercial, retail, and industrial customers across the U.S. and Canada | [Business Strategies and Competitive Strengths](index=9&type=section&id=Item%201.%20Business-Business%20Strategies%20and%20Competitive%20Strengths) The company's strategy prioritizes debt reduction, long-term fee-based contracts, and leveraging its strategically located assets - Principal business objectives include maximizing profitability, prudent growth, and maintaining a strong balance sheet[29](index=29&type=chunk) - Key strategies involve **reducing debt and leverage**, focusing on **long-term fixed-fee contracts** to minimize commodity price risk, and growing organically by utilizing its existing asset footprint[30](index=30&type=chunk) - Competitive strengths are derived from strategically located water processing facilities and crude oil assets in major basins like the **Delaware and DJ Basins**, a diversified business model that provides stable cash flows, and a seasoned management team[30](index=30&type=chunk)[36](index=36&type=chunk) [Water Solutions](index=10&type=section&id=Item%201.%20Business-Water%20Solutions) The Water Solutions segment is a leading U.S. produced water management business with an integrated pipeline network - The segment handled approximately **849.5 million barrels** of produced water during the year ended March 31, 2023, positioning it as the largest independent produced water transportation and disposal company in the U.S[33](index=33&type=chunk) Water Solutions Facilities Overview (as of March 31, 2023) | Location | Facilities | Wells | Permitted Processing Capacity (bpd) | | :--- | :--- | :--- | :--- | | Delaware Basin (TX & NM) | 57 | 125 | 4,951,300 | | Eagle Ford Basin (TX) | 19 | 33 | 836,000 | | DJ Basin (CO) | 13 | 31 | 535,500 | | Other Basins | 4 | 11 | 170,240 | | **Total** | **93** | **197** | **6,493,040** | - The core asset is the Northern Delaware Basin system, with **~730 miles of large-diameter pipelines**, 57 active disposal facilities, and **~670,000 dedicated acres** under long-term agreements[34](index=34&type=chunk) - In the Delaware Basin, approximately **98% of produced and flowback water** was received via pipelines during FY2023[40](index=40&type=chunk) [Crude Oil Logistics](index=12&type=section&id=Item%201.%20Business-Crude%20Oil%20Logistics) The Crude Oil Logistics segment manages crude oil purchasing, transport, and storage, centered around the Grand Mesa Pipeline - The segment's foundational asset is the **Grand Mesa Pipeline**, a 550-mile pipeline from Weld County, CO, to Cushing, OK, with **150,000 barrels per day** of capacity owned by NGL[49](index=49&type=chunk) - The Grand Mesa Pipeline transported approximately **27.7 million barrels** of crude oil during the year ended March 31, 2023[49](index=49&type=chunk) - The segment owns and operates a major crude oil terminal in Cushing, Oklahoma, with **3,626,000 barrels of storage capacity** and significant pipeline connectivity[51](index=51&type=chunk) - Profitability is impacted by crude oil market structures; the segment benefits from **contango markets** (forward prices > spot prices) and is challenged by **backwardation** (forward prices < spot prices)[62](index=62&type=chunk) [Liquids Logistics](index=13&type=section&id=Item%201.%20Business-Liquids%20Logistics) The Liquids Logistics segment supplies NGLs and refined products across North America via a network of terminals and railcars - The segment sold approximately **2.7 billion gallons** of NGLs, refined products, and renewables in FY2023, averaging **7.45 million gallons per day**[65](index=65&type=chunk) - Operations are conducted through **25 owned terminals**, third-party facilities, nine common carrier pipelines, and a fleet of approximately **4,400 leased railcars**[64](index=64&type=chunk)[80](index=80&type=chunk) - The **Ambassador Pipeline**, a ~225-mile propane pipeline in Michigan, became fully operational in August 2022[79](index=79&type=chunk) - The business is seasonal, with propane demand highest in the winter heating season and gasoline demand peaking during the summer driving season[83](index=83&type=chunk)[84](index=84&type=chunk) [Human Capital and Government Regulation](index=17&type=section&id=Item%201.%20Business-Human%20Capital%20and%20Government%20Regulation) The company's operations are subject to extensive environmental, health, and safety regulations across federal, state, and local levels - As of March 31, 2023, the company had **638 employees** in 29 states and Canada[92](index=92&type=chunk) - The company's operations are subject to extensive regulation by agencies such as **FERC** (for interstate pipelines), **EPA**, and **DOT**, covering environmental protection, safety, and transportation[99](index=99&type=chunk)[104](index=104&type=chunk)[124](index=124&type=chunk) - Environmental regulations such as **RCRA, CERCLA, the Clean Air Act, and the Clean Water Act** impose significant compliance obligations and potential liabilities for handling hazardous substances and waste[104](index=104&type=chunk) - The company faces risks related to potential future regulations on **greenhouse gas (GHG) emissions** and **hydraulic fracturing**, which could increase costs and affect customer demand[115](index=115&type=chunk)[116](index=116&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) The partnership faces material risks related to its substantial debt, commodity prices, regulations, and MLP structure - The company's substantial indebtedness (**$2.9 billion** at March 31, 2023) and restrictive covenants in debt agreements limit financial flexibility, including the ability to pay distributions, which **have been suspended**[144](index=144&type=chunk)[148](index=148&type=chunk) - Business operations are highly dependent on crude oil and natural gas production levels, which are influenced by commodity prices, producer spending, and market conditions beyond the company's control[157](index=157&type=chunk)[158](index=158&type=chunk) - The company is subject to extensive and evolving federal, state, and local regulations regarding environmental matters (including climate change and hydraulic fracturing), safety, and transportation, which could increase compliance costs and liabilities[205](index=205&type=chunk)[212](index=212&type=chunk) - The Partnership Agreement **limits the fiduciary duties** of the General Partner to unitholders and restricts remedies, creating potential conflicts of interest where the GP may favor its own interests[230](index=230&type=chunk)[234](index=234&type=chunk) [Unresolved Staff Comments](index=50&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that there are no unresolved staff comments from the SEC - None[301](index=301&type=chunk) [Properties](index=51&type=section&id=Item%202.%20Properties) The company holds satisfactory rights to its properties, which are substantially used as collateral for its debt facilities - The company believes it has satisfactory title or valid rights to use all of its material properties[303](index=303&type=chunk) - Obligations under the ABL Facility and the 2026 Senior Secured Notes are secured by liens and mortgages on **substantially all of the company's real and personal property**[303](index=303&type=chunk) - The corporate headquarters are leased and located in Tulsa, Oklahoma[305](index=305&type=chunk) [Legal Proceedings](index=51&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal proceedings arising from the ordinary course of business - The company is involved in various legal proceedings and claims in the ordinary course of business, with further details provided in Note 8 to the consolidated financial statements[306](index=306&type=chunk) [Mine Safety Disclosures](index=51&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[308](index=308&type=chunk) PART II [Market for Registrant's Common Equity, Related Unitholder Matters and Issuer Purchases of Equity Securities](index=52&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Unitholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) NGL's common units trade on the NYSE, but distributions are suspended due to debt covenants tied to a leverage ratio target - Common units are listed on the New York Stock Exchange under the symbol **"NGL"**[311](index=311&type=chunk) - The Partnership Agreement requires quarterly distribution of all available cash; however, distributions are restricted by the 2026 Senior Secured Notes indenture until the **total leverage ratio is not greater than 4.75 to 1.00**[311](index=311&type=chunk)[317](index=317&type=chunk) - Quarterly common unit distributions were **suspended** starting with the quarter ended December 31, 2020, and all preferred unit distributions were **suspended** starting with the quarter ended March 31, 2021[318](index=318&type=chunk) - In February 2023, **23,874 common units** were surrendered by employees for tax withholding, which are deemed as repurchases[319](index=319&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Operating income improved significantly in FY2023, driven by strong performance in the Water Solutions segment and a focus on deleveraging Consolidated Results of Operations (in thousands) | Metric | FY 2023 | FY 2022 | FY 2021 | | :--- | :--- | :--- | :--- | | **Revenues** | $8,694,904 | $7,947,915 | $5,227,023 | | **Operating Income (Loss)** | $289,163 | $83,043 | $(390,753) | | **Net Income (Loss) Attributable to NGL** | $51,386 | $(184,756) | $(639,819) | - The Water Solutions segment's operating income increased to **$198.9 million** in FY2023 from $94.9 million in FY2022, driven by higher produced water volumes and recovered crude oil sales[326](index=326&type=chunk) - The company's total leverage ratio was **4.56 to 1.00** as of March 31, 2023, below the 4.75 to 1.00 threshold required to resume distributions[475](index=475&type=chunk) - Capital expenditures for fiscal year 2024 are expected to be **$125 million**[496](index=496&type=chunk) [Segment Operating Results for the Years Ended March 31, 2023 and 2022](index=58&type=section&id=Item%207.%20MD%26A-Segment%20Operating%20Results%20for%20FY2023%20vs%20FY2022) All segments reported improved operating income in fiscal 2023, led by substantial growth in the Water Solutions segment Segment Operating Income (Loss) (in thousands) | Segment | FY 2023 | FY 2022 | Change | | :--- | :--- | :--- | :--- | | **Water Solutions** | $198,924 | $94,851 | $104,073 | | **Crude Oil Logistics** | $81,524 | $45,033 | $36,491 | | **Liquids Logistics** | $66,624 | $(8,441) | $75,065 | - Water Solutions processed an average of **2,327,337 barrels of produced water per day** in FY2023, up from 1,797,918 in FY2022, primarily due to increased activity in the Delaware Basin[350](index=350&type=chunk) - Crude Oil Logistics experienced a significant swing in derivative impact, recording a **$14.6 million gain** in FY2023 compared to a **$92.0 million loss** in FY2022[364](index=364&type=chunk) - Liquids Logistics' operating results in FY2022 included a **$60.1 million loss** on the sale of Sawtooth Caverns, which did not recur in FY2023[335](index=335&type=chunk)[393](index=393&type=chunk) [Segment Operating Results for the Years Ended March 31, 2022 and 2021](index=67&type=section&id=Item%207.%20MD%26A-Segment%20Operating%20Results%20for%20FY2022%20vs%20FY2021) In fiscal 2022, Water Solutions and Crude Oil Logistics recovered from prior-year losses, while Liquids Logistics declined Segment Operating Income (Loss) (in thousands) | Segment | FY 2022 | FY 2021 | Change | | :--- | :--- | :--- | :--- | | **Water Solutions** | $94,851 | $(92,720) | $187,571 | | **Crude Oil Logistics** | $45,033 | $(304,330) | $349,363 | | **Liquids Logistics** | $(8,441) | $70,441 | $(78,882) | - Water Solutions' processed produced water volumes increased to an average of **1,797,918 barrels per day** in FY2022 from 1,364,591 in FY2021[407](index=407&type=chunk) - The Crude Oil Logistics segment's FY2021 results included a **$384.1 million loss** on disposal or impairment of assets, primarily related to an intangible asset impairment and goodwill impairment, which did not recur in FY2022[420](index=420&type=chunk)[430](index=430&type=chunk) - Liquids Logistics' propane product margin per gallon (excluding derivatives) fell from **$0.057** in FY2021 to **$0.011** in FY2022 due to lower demand and increased competition[433](index=433&type=chunk)[441](index=441&type=chunk) [Liquidity, Sources of Capital and Capital Resource Activities](index=79&type=section&id=Item%207.%20MD%26A-Liquidity%20and%20Capital%20Resources) Liquidity is sourced from operations and an ABL facility, with a primary focus on deleveraging to meet debt covenants - As of March 31, 2023, total long-term debt face amount was **$2.9 billion**[502](index=502&type=chunk) - The ABL Facility has commitments of **$600.0 million**, with **$138.0 million borrowed** and **$152.0 million in letters of credit outstanding** as of March 31, 2023[481](index=481&type=chunk) - Net cash provided by operating activities was **$445.2 million** in FY2023, a significant increase from $205.8 million in FY2022[507](index=507&type=chunk) - During FY2023, the company repurchased or redeemed all **$301.9 million** of its 2023 Notes and repurchased **$12.5 million** of its 2026 Notes[342](index=342&type=chunk)[487](index=487&type=chunk) [Critical Accounting Estimates](index=85&type=section&id=Item%207.%20MD%26A-Critical%20Accounting%20Estimates) Critical accounting estimates involve significant judgment regarding goodwill impairment, asset valuation, and derivative instruments - **Goodwill impairment testing** is performed annually or when a triggering event occurs, relying on assumptions about future cash flows, growth rates, and discount rates[520](index=520&type=chunk) - **Long-lived assets** are evaluated for impairment when events indicate their carrying value may not be recoverable, based on anticipated undiscounted future cash flows[521](index=521&type=chunk) - The **fair value of derivative financial instruments** is determined using publicly available prices for exchange-traded derivatives and pricing models for non-exchange-traded instruments[525](index=525&type=chunk) - **Revenue recognition** for certain long-term Water Solutions contracts requires estimating variable consideration, such as minimum volume commitments, based on forecasted production information[526](index=526&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=87&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rates, commodity prices, and counterparty credit - The company is exposed to **interest rate risk** through its variable-rate ABL Facility and its Class B and C Preferred Units, which have floating-rate distribution features[534](index=534&type=chunk)[535](index=535&type=chunk)[536](index=536&type=chunk) - A **0.125% change in interest rates** would change annual interest expense on the ABL Facility by **$0.2 million**, based on the balance at March 31, 2023[534](index=534&type=chunk) - **Commodity price risk** is managed through a combination of forward contracts and financial derivatives to reduce price volatility, but the company **does not use hedge accounting**[539](index=539&type=chunk)[540](index=540&type=chunk) - **Credit risk** is managed by evaluating counterparty financial condition, requiring collateral or prepayments, and using master netting agreements[543](index=543&type=chunk) [Controls and Procedures](index=90&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and the independent auditor concluded that disclosure controls and internal controls over financial reporting were effective - Management concluded that the company's **disclosure controls and procedures were effective** as of March 31, 2023[548](index=548&type=chunk) - Management concluded that the company's **internal control over financial reporting was effective** as of March 31, 2023, based on the COSO framework[550](index=550&type=chunk) - The independent auditor, Grant Thornton LLP, issued an **unqualified opinion** on the effectiveness of the Partnership's internal control over financial reporting as of March 31, 2023[554](index=554&type=chunk) - There were **no changes in internal controls** over financial reporting during the fourth quarter of fiscal 2023 that materially affected, or are reasonably likely to materially affect, these controls[551](index=551&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=92&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) The partnership is managed by its general partner, whose board consists of eight appointed, non-elected directors - The board of directors of the general partner has **eight members**, with **four determined to be independent** according to NYSE and SEC standards[565](index=565&type=chunk) - Directors are **appointed** by the NGL Energy GP Investor Group; unitholders do not elect directors[564](index=564&type=chunk) - The board has an **audit committee** and a **compensation committee**, both comprised of independent directors[598](index=598&type=chunk)[600](index=600&type=chunk) - The company has adopted a Code of Ethics, Corporate Governance Guidelines, and a Code of Business Conduct and Ethics[601](index=601&type=chunk) [Executive Compensation](index=97&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation is based on a pay-for-performance philosophy, with no new equity awards granted in FY2023 - The compensation philosophy emphasizes **pay-for-performance**, aiming to attract, retain, and motivate executives while aligning their interests with unitholders[609](index=609&type=chunk)[610](index=610&type=chunk) FY2023 Named Executive Officer Compensation | Name | Position | Total Compensation ($) | | :--- | :--- | :--- | | H. Michael Krimbill | Chief Executive Officer | 666,960 | | Bradley P. Cooper | EVP and Chief Financial Officer | 806,515 | | Lawrence J. Thuillier | Chief Accounting Officer | 565,325 | | Kurston P. McMurray | EVP and General Counsel | 1,026,802 | | Linda J. Bridges | Former EVP and CFO | 1,182,624 | | John A. Ciolek | Former EVP, Strategic Initiatives | 315,722 | - The company's Long-Term Incentive Plan (LTIP) expired in May 2021, and **no new equity awards were granted** to named executive officers in fiscal year 2023[620](index=620&type=chunk)[642](index=642&type=chunk) - The ratio of the CEO's annual total compensation ($666,960) to the median employee's compensation ($69,503) was approximately **10 to 1** for fiscal year 2023[653](index=653&type=chunk)[656](index=656&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Unitholder Matters](index=106&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Unitholder%20Matters) Invesco Ltd. and EIG are the largest beneficial owners, with directors and executive officers collectively owning 6.68% Beneficial Ownership (as of May 26, 2023) | Beneficial Owner | Percentage of Common Units | | :--- | :--- | | Invesco Ltd. | 14.95% | | EIG Neptune Equity Aggregator, L.P. | 11.26% | | All directors and executive officers as a group | 6.68% | - The company's Long-Term Incentive Plan (LTIP) expired on May 10, 2021, and as of March 31, 2023, there were **no securities available for future grants** under the plan[669](index=669&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=108&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The company engages in related-party transactions, which are reviewed by the board, and has four independent directors - The General Partner and its affiliates are reimbursed for all expenses incurred on the Partnership's behalf but **do not receive a management fee**[671](index=671&type=chunk) - During fiscal year 2023, the company purchased **$1.435 million** in aircraft services from KAIR2014 LLC, an entity 50% owned by CEO H. Michael Krimbill[675](index=675&type=chunk) - The board of directors has adopted a Code of Business Conduct and Ethics for reviewing and approving or ratifying transactions with related persons[679](index=679&type=chunk) - **Four of the eight members** of the general partner's board of directors are considered independent[683](index=683&type=chunk)[565](index=565&type=chunk) [Principal Accountant Fees and Services](index=111&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Grant Thornton LLP's fees for audit services totaled approximately $1.8 million in fiscal year 2023 Accountant Fees (in thousands) | Fee Type | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Audit fees | $1,769 | $1,882 | | Audit-related fees | $0 | $0 | | Tax fees | $0 | $0 | | All other fees | $0 | $0 | | **Total** | **$1,769** | **$1,882** | - All services provided by Grant Thornton LLP in fiscal years 2023 and 2022 were **pre-approved by the Audit Committee**[684](index=684&type=chunk) PART IV [Exhibit and Financial Statement Schedules](index=112&type=section&id=Item%2015.%20Exhibit%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the annual report - This item lists all financial statements and exhibits filed with the Form 10-K[686](index=686&type=chunk) - Financial statement schedules were omitted because they were not applicable or the information was included in the financial statements or notes[688](index=688&type=chunk) Financial Statements [Consolidated Financial Statements](index=121&type=section&id=Consolidated%20Financial%20Statements) The company reported net income of $51.4 million in FY2023, a significant turnaround from the prior year's loss Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $1,292,445 | $1,546,339 | | **Total Assets** | $5,456,144 | $6,070,345 | | **Total Current Liabilities** | $1,110,137 | $1,277,202 | | **Long-Term Debt (Book Value)** | $2,857,805 | $3,350,463 | | **Total Equity** | $767,429 | $714,453 | Consolidated Statement of Operations Highlights (in thousands) | Account | FY 2023 | FY 2022 | | :--- | :--- | :--- | | **Total Revenues** | $8,694,904 | $7,947,915 | | **Operating Income** | $289,163 | $83,043 | | **Net Income (Loss) Attributable to NGL** | $51,386 | $(184,756) | | **Net Loss per Common Unit** | $(0.56) | $(2.22) | Consolidated Cash Flow Highlights (in thousands) | Account | FY 2023 | FY 2022 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $445,186 | $205,846 | | **Net Cash from (used in) Investing Activities** | $64,188 | $(212,408) | | **Net Cash (used in) from Financing Activities** | $(507,765) | $5,555 | [Notes to Consolidated Financial Statements](index=126&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, segment data, debt covenants, and confirm no goodwill impairment was recorded in FY2023 - Goodwill impairment was tested quantitatively for the Crude Oil Logistics and Wholesale/Terminal reporting units as of Jan 1, 2023, with fair values exceeding carrying values by **~18%** and **~5%**, respectively, resulting in **no impairment**[800](index=800&type=chunk)[801](index=801&type=chunk) - As of March 31, 2023, total long-term debt had a face amount of **$2.89 billion**, primarily consisting of **$2.05 billion in 7.5% Senior Secured Notes** due 2026 and **$138 million** outstanding on the ABL Facility[817](index=817&type=chunk) - Cumulative unpaid distributions on preferred units as of March 31, 2023, totaled **$74.3 million** for Class B, **$10.7 million** for Class C, and **$167.7 million** for Class D[879](index=879&type=chunk)[881](index=881&type=chunk)[888](index=888&type=chunk) - In March 2023, the company sold its marine assets for **$111.7 million in cash** and certain saltwater disposal assets for **$13.6 million in cash** and a note receivable[983](index=983&type=chunk)[987](index=987&type=chunk)

NGL Energy Partners LP (NYSE:NGL) Q3 2023 Earnings Conference Call February 9, 2023 5:30 PM ET Company Participants Brad Cooper - EVP and CFO Mike Krimbill - CEO Kurston McMurray - General Counsel Doug White - EVP, Water Solutions Jeff Pinter - EVP, Liquids Logistics Don Robinson - EVP, Crude Oil Logistics Conference Call Participants Patrick Fitzgerald - Baird Tarek Hamid - JPMorgan Gregg Brody - Bank of America Ned Baramov - Wells Fargo Jason Mandel - RBC Operator Greetings. Welcome to the NGL Energy Part ...

NGL Energy Partners LP (NYSE:NGL) Q2 2023 Results Conference Call November 9, 2022 5:00 PM ET Company Participants Linda Bridges - CFO Mike Krimbill - CEO Conference Call Participants Operator Good day, ladies and gentlemen, and welcome to the NGL Energy Partners LP 2Q '23 Earnings Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Linda Bridges, CFO at NGL Energy Partners. Ma'am, the floor is yours. Linda Bridges Hi, and welcome to NGL's second quarter fiscal 2023 earn ...