NGL Energy Partners LP (NGL): history, ownership, mission, how it works & makes money

A Brief History of NGL Energy Partners LP (NGL)

Formation and Early Years

NGL Energy Partners LP was formed in 2010, becoming a publicly traded master limited partnership (MLP) on the New York Stock Exchange under the ticker symbol "NGL." The company was founded to provide services in the oil and gas sector, focusing on logistics and water solutions.

Initial Public Offering (IPO)

NGL completed its IPO on May 4, 2011, raising approximately $170 million by offering 8 million common units at a price of $21.25 each, providing initial capital for further expansion.

Expansion of Services

Over the years, NGL expanded its operations into multiple segments, including the logistics of crude oil and water services. The company built a network of assets, including terminals, pipelines, and rail facilities.

Strategic Growth

By 2015, NGL had positioned itself as a leader in the midstream sector, focusing heavily on environmental solutions and water management. The company reported revenues exceeding $800 million in 2015.

Financial Performance

As of 2021, NGL reported revenues of $1.16 billion, reflecting a strong recovery after the downturn in the oil market due to the COVID-19 pandemic. The company's EBITDA for the same year was reported at $210 million.

Market Capitalization

As of October 2023, NGL Energy Partners LP had a market capitalization of approximately $160 million.

Recent Developments

In recent years, NGL has focused on reducing debt and enhancing liquidity, particularly amid challenging market conditions. The company refinanced $300 million of its debt in early 2023, resulting in decreased interest expenses.

Corporate Governance

The governance of NGL consists of a board of directors with a majority of independent members. The company emphasizes compliance and ethical standards in its operations.

Environmental Commitment

NGL has committed to sustainability practices, launching initiatives to reduce carbon emissions and improve water quality treatment processes. The company invested approximately $30 million in sustainable technologies in 2022.

Conclusion of the Historical Overview

NGL Energy Partners LP has continually adapted to the evolving energy landscape, focusing on strategic acquisitions, financial stability, and environmental responsibility. The company's journey reflects its dedication to providing essential services while maintaining a commitment to sustainability and corporate governance.

A Who Owns NGL Energy Partners LP (NGL)

Ownership Structure

NGL Energy Partners LP (NGL) operates as a publicly traded limited partnership. The ownership of NGL is primarily divided among institutional investors, retail investors, and insiders.

Key Shareholders

The following table summarizes the key shareholders of NGL Energy Partners LP as of October 2023:

Institutional Ownership Breakdown

Institutional ownership is further broken down as follows:

Insider Holdings

The table below represents the insider holdings of NGL Energy Partners LP:

Recent Financial Performance

NGL Energy Partners LP reported the following financial highlights for the second quarter of 2023:

• Revenue: $350 million
• Net Income: $50 million
• EBITDA: $75 million
• Distributions Paid: $20 million

NGL Unit Price and Market Capitalization

As of October 2023, the market data for NGL is as follows:

• Current Unit Price: $25.00
• Market Capitalization: $1.0 billion
• 52-Week High: $30.00
• 52-Week Low: $18.00

NGL Energy Partners LP (NGL) Mission Statement

Mission Statement Overview

NGL Energy Partners LP aims to provide high-quality services in the transportation and logistics of crude oil and water solutions. The company focuses on safety, sustainability, and exceeding customer expectations.

Core Values

• Integrity: Upholding ethical standards in all operations.
• Safety: Ensuring the safety of employees and the environment.
• Customer Satisfaction: Prioritizing the needs and expectations of clients.
• Efficiency: Striving for operational excellence and continuous improvement.

Strategic Goals

• Expansion: Targeting growth in core service areas by increasing infrastructure capabilities.
• Innovation: Leveraging technology for enhanced service delivery and operational efficiency.
• Partnerships: Building strong relationships with customers, suppliers, and stakeholders.
• Responsibility: Commitment to environmental stewardship and community engagement.

Financial Performance

As of Q2 2023, NGL Energy Partners LP reported a gross revenue of approximately $1.448 billion and a net income of $45 million.

Recent Developments

In the fiscal year 2023, NGL announced a capital expenditure budget of $50 million to enhance operations and expand infrastructure.

Service Offerings

Market Position

NGL Energy Partners LP has established itself as a key player in the infrastructure space, with a market capitalization of approximately $830 million as of October 2023.

Outlook

The company anticipates adjusting its operational strategy to target a 10% growth in revenue for the next fiscal year, emphasizing innovation and customer-centric services.

How NGL Energy Partners LP (NGL) Works

Overview

NGL Energy Partners LP is an operator providing integrated solutions in the oil and gas sector, primarily focusing on the transportation and storage of crude oil and other liquids. The company operates through various segments, which include Logistics, Water Solutions, and Liquids.

Operational Segments

• Logistics
• Water Solutions
• Liquids

Logistics Segment

The Logistics segment is responsible for the transportation and terminaling of crude oil and refined products. As of the latest reports, NGL operates over 1,800 miles of pipelines, including 38 storage terminals located strategically across the U.S.

In the fiscal year 2023, the Logistics segment reported revenues of approximately $750 million.

Water Solutions Segment

This segment focuses on providing water management services for oil and gas operators. NGL offers services including wastewater disposal and fresh water sourcing. In 2023, the Water Solutions segment generated about $300 million in revenue.

Liquids Segment

The Liquids segment handles the transportation and distribution of various liquids, including refined products and chemicals. This segment reported revenues of around $250 million in FY 2023.

Financial Performance

NGL reported a total revenue of approximately $1.3 billion for the fiscal year 2023. The company recorded an EBITDA of $400 million, showcasing a robust operating performance.

Debt and Equity

As of Q2 2023, NGL’s total debt stood at approximately $1.2 billion. The debt-to-equity ratio for the company was approximately 2.0.

Market Presence

NGL Energy Partners LP is publicly traded on the New York Stock Exchange under the ticker symbol NGL. The company’s market capitalization as of October 2023 was approximately $450 million.

Recent Developments

In 2023, NGL announced plans to expand its water disposal facilities in the Permian Basin, with an investment of approximately $50 million earmarked for these improvements.

Employee Statistics

NGL Energy employs approximately 1,200 individuals across its various operations as of 2023.

Significant Financial Metrics

Conclusion

NGL Energy Partners LP provides vital services in the oil and gas industry through its integrated operational segments, strong financial performance, and ongoing expansion initiatives.

How NGL Energy Partners LP (NGL) Makes Money

Business Segments

NGL Energy Partners LP operates through several segments that contribute to its revenue generation. The primary segments include:

• Water Solutions
• Crude Oil Logistics
• Liquid Hydrocarbon Logistics
• Refined Products Logistics

Water Solutions

The Water Solutions segment focuses on the collection, transportation, and disposal of wastewater produced by oil and natural gas exploration and production. In 2022, this segment contributed approximately $290 million in revenue, reflecting a significant portion of the company's overall earnings.

Crude Oil Logistics

NGL's Crude Oil Logistics segment is involved in the transportation and storage of crude oil. In 2022, this segment generated revenues of around $450 million. The company operates a network of pipelines and storage facilities that enhance its logistics capabilities.

Liquid Hydrocarbon Logistics

The Liquid Hydrocarbon Logistics segment includes the transportation and storage of refined products and chemicals. This segment's revenue accounted for about $220 million in 2022.

Refined Products Logistics

Refined Products Logistics focuses on the transportation and terminal services of refined petroleum products. In 2022, it represented approximately $120 million in revenue.

Revenue Breakdown by Segment (2022)

Cost Structure

The company incurs various costs associated with its operations, including:

• Operating expenses
• Cost of goods sold
• General and administrative expenses
• Depreciation and amortization

Operating Expenses

NGL's operating expenses totaled approximately $600 million in 2022, reflecting the costs associated with running its facilities and operations across the different segments.

Cost of Goods Sold (COGS)

The cost of goods sold for NGL was reported at around $350 million for the same year, including the direct costs attributable to the production and distribution of its services.

General and Administrative Expenses

General and administrative expenses amounted to approximately $100 million, covering salaries, overhead, and other administrative costs.

Depreciation and Amortization

The company allocated around $75 million for depreciation and amortization, reflecting the wear and tear on its physical assets and intangible assets.

Profitability Metrics

NGL's profitability is reflected in its EBITDA, which was approximately $350 million in 2022. The company also reported a net income of around $80 million.

Debt and Financial Health

As of the end of 2022, NGL had total debt of approximately $1.2 billion with a debt-to-EBITDA ratio of about 3.4, indicating the leverage used to finance its operations.

Future Growth and Opportunities

NGL Energy Partners is positioned to benefit from the increasing demand for energy infrastructure and logistics services, particularly in the shale oil and gas regions. The company is exploring potential expansion in its Water Solutions and Crude Oil Logistics segments.