NGL Energy Partners LP (NGL): Business Model Canvas

Key Partnerships

NGL Energy Partners LP (NGL) has established key partnerships with various entities in the oil and gas industry to enhance its operations and services. These strategic alliances play a crucial role in ensuring a seamless supply chain and efficient delivery of products to customers.

Some of the key partnerships include:

• Strategic alliances with oil and gas producers: NGL has established partnerships with oil and gas producers to secure reliable sources of raw materials. These alliances also help NGL in optimizing its supply chain and reducing operational costs.
• Collaboration with transport and logistics companies: NGL works closely with transport and logistics companies to ensure the efficient transportation of products from facilities to customers. These partnerships enable NGL to meet delivery timelines and provide exceptional customer service.
• Joint ventures in pipeline operations: NGL has entered into joint ventures with other companies to expand its pipeline operations. These partnerships allow NGL to access new markets and improve its infrastructure for transporting products efficiently.
• Suppliers of equipment and technology: NGL partners with suppliers of equipment and technology to enhance its operations and improve efficiency. These partnerships enable NGL to stay at the forefront of technological advancements and provide innovative solutions to customers.

Key Activities

NGL Energy Partners LP (NGL) is engaged in various key activities that form the foundation of its business model. These activities include:

• Crude Oil Logistics and Transportation: NGL operates a network of pipelines, terminals, and trucking operations to transport crude oil from production areas to refineries and other customers. This key activity involves ensuring the safe and efficient movement of crude oil while also providing value-added services such as blending and quality control.
• Water Disposal and Treatment Services: NGL provides water disposal and treatment services for the oil and gas industry. This key activity involves managing produced water and other wastewater streams generated during oil and gas production operations. NGL's water disposal and treatment services help its customers comply with environmental regulations and minimize their environmental impact.
• Refined Products and Renewables Distribution: NGL distributes refined products such as gasoline, diesel, and jet fuel to customers in various end markets. The company also distributes renewable fuels such as biodiesel and ethanol. This key activity involves managing a network of terminals, pipelines, and other infrastructure to deliver these products to customers in a timely and cost-effective manner.
• Storage Facility Management: NGL operates storage facilities for crude oil, refined products, and other liquids. This key activity involves managing inventory levels, handling logistics, and ensuring the safe and secure storage of products. NGL's storage facility management services provide its customers with flexibility and reliability in managing their supply chains.

Key Resources

NGL Energy Partners LP (NGL) relies on several key resources to effectively operate its business and provide energy solutions to its customers.

• Network of pipelines and storage tanks: One of NGL's key resources is its extensive network of pipelines and storage tanks. These assets allow the company to efficiently transport and store energy products, ensuring a reliable supply for its customers.
• Fleet of transport vehicles and equipment: NGL also maintains a fleet of transport vehicles and equipment to move energy products from one location to another. This ensures that products are delivered in a timely and cost-effective manner.
• Technology for efficient energy management: NGL invests in technology to optimize its energy management processes. This includes software for monitoring energy flows, tracking inventory levels, and analyzing customer demand patterns.
• Skilled workforce and industry expertise: NGL's employees are another critical resource. The company employs skilled professionals with industry expertise who can effectively manage its operations, ensure regulatory compliance, and provide top-notch customer service.

Value Propositions

NGL Energy Partners LP (NGL) offers a range of value propositions to its customers in the midstream energy sector. These value propositions are key to the success and growth of the company, ensuring customer satisfaction and loyalty. The following are some of the key value propositions offered by NGL:

• Comprehensive midstream energy services: NGL provides a wide range of midstream energy services, including storage, transportation, and marketing of crude oil, natural gas liquids, refined products, and water solutions. This comprehensive range of services allows NGL to meet the diverse needs of its customers and provide a one-stop-shop for all their midstream energy requirements.
• Reliable and efficient supply chain solutions: NGL is committed to providing reliable and efficient supply chain solutions to its customers. By leveraging its extensive network of assets and strategic partnerships, NGL ensures that its customers receive their energy products in a timely and cost-effective manner. This reliability and efficiency contribute to the overall success of NGL's customers' operations.
• Competitive pricing strategies: NGL is dedicated to offering competitive pricing strategies to its customers, ensuring that they receive the best value for their money. By continuously monitoring market trends and optimizing its pricing strategies, NGL is able to provide cost-effective solutions to its customers without compromising on quality or service.
• Environmental compliance and sustainability focus: NGL places a strong emphasis on environmental compliance and sustainability in all aspects of its operations. Through the implementation of best practices and environmentally friendly technologies, NGL works towards reducing its carbon footprint and promoting a greener future for the energy industry. By offering sustainable solutions to its customers, NGL demonstrates its commitment to environmental stewardship and corporate responsibility.

Customer Relationships

NGL Energy Partners LP (NGL) values strong and long-lasting relationships with its customers in the energy industry. To achieve this, the company has implemented several strategies to ensure customer satisfaction and loyalty.

• Long-term contracts with energy producers: NGL establishes long-term contracts with energy producers to provide them with stability and assurance in their operations. These contracts help in fostering trust and commitment between NGL and its clients.
• Dedicated support teams for client management: NGL assigns dedicated support teams to each client to ensure personalized and efficient service. These teams work closely with clients to address any concerns, provide assistance, and facilitate smooth business operations.
• Customized service offerings based on client needs: NGL understands that each client has unique requirements and preferences. Therefore, the company offers customized service offerings tailored to meet the specific needs of each client. This personalized approach helps in strengthening the relationship with clients.
• Regular communication and updates through digital platforms: NGL maintains regular communication with its clients through various digital platforms. This includes sending updates, notifications, and relevant information to keep clients informed about the latest developments in the industry and the services offered by NGL.

Channels

NGL Energy Partners LP utilizes a variety of channels to reach and engage customers in the energy industry. These channels include:

• Direct sales force: NGL Energy Partners LP employs a dedicated sales team to directly engage with customers for contract negotiations. This personal touch allows for tailored solutions to meet each customer's specific needs and requirements.
• Online portals: NGL Energy Partners LP provides online portals for customers to track services, access support, and manage their accounts. This digital channel enhances convenience and efficiency for customers.
• Physical delivery: NGL Energy Partners LP utilizes a network of pipelines and trucks for physical delivery of energy products to customers. This ensures timely and reliable delivery of products to meet customer demand.
• Industry conferences and trade shows: NGL Energy Partners LP participates in industry conferences and trade shows to engage with existing customers and attract new business opportunities. These events provide a platform for showcasing products and services, networking with industry peers, and staying updated on market trends.

Customer Segments

NGL Energy Partners LP (NGL) serves a diverse range of customers in the energy industry, catering to their specific needs and requirements. Here are the key customer segments for NGL:

• Oil and gas production companies: One of NGL's primary customer segments is oil and gas production companies. These companies rely on NGL for services such as gathering, treating, and transportation of oil and gas products. NGL provides critical infrastructure and logistics solutions to support their operations.
• Industrial and commercial energy users: NGL also serves industrial and commercial energy users who require a reliable supply of energy products. These customers may include manufacturing plants, refineries, and other industrial facilities that rely on NGL for natural gas, propane, and other energy products.
• Renewable energy firms: With the growing demand for renewable energy sources, NGL caters to renewable energy firms that need transportation and storage solutions for biofuels, ethanol, and other sustainable energy products. NGL's extensive infrastructure network helps these firms deliver their products to market efficiently.
• Government and regulatory bodies: NGL also works closely with government agencies and regulatory bodies to ensure compliance with industry standards and regulations. These entities rely on NGL for expertise in energy logistics and distribution, as well as for insights on industry trends and developments.

By understanding and catering to the unique needs of these customer segments, NGL Energy Partners LP is able to provide tailored solutions and value-added services that drive mutual success and growth.

Cost Structure

The cost structure of NGL Energy Partners LP includes several key components that are critical to the operation and success of the business. These costs must be carefully managed and monitored to ensure profitability and sustainability.

• Operational costs of transportation and logistics: NGL Energy Partners LP operates a network of pipelines, terminals, and storage facilities to transport and store various energy products. The costs associated with operating and maintaining this infrastructure include expenses related to fuel, labor, storage, and transportation.
• Maintenance of pipelines and equipment: Regular maintenance and inspection of pipelines and equipment are essential to ensure the safe and efficient operation of NGL Energy Partners LP's assets. These costs include expenses for equipment repairs, upgrades, and replacements.
• Investment in technology upgrades and innovation: As a technology-driven company, NGL Energy Partners LP continually invests in upgrading its systems and processes to improve efficiency, reduce costs, and enhance customer service. These investments include expenses for software development, hardware upgrades, and training programs.
• Regulatory compliance and safety measures: Compliance with federal, state, and local regulations is a top priority for NGL Energy Partners LP. The company invests significant resources in ensuring that its operations meet all safety, environmental, and regulatory requirements. This includes costs for permits, inspections, audits, and training programs.

Revenue Streams

NGL Energy Partners LP (NGL) generates revenue through various sources within their business model. These revenue streams are essential for the company to maintain sustainable growth and profitability. Below are the key revenue streams for NGL:

1. Fees from transportation and logistics services: NGL offers transportation and logistics services for crude oil, natural gas liquids, refined products, and other energy-related commodities. The company charges fees for transporting these products from production sites to refineries or distribution points. These fees contribute significantly to the company's overall revenue.

2. Charges for storage and terminal services: NGL operates storage and terminal facilities for various energy products, including crude oil and natural gas liquids. Customers pay charges for utilizing these storage and terminal services to store their products. This revenue stream adds to the company's earnings.

3. Revenues from water treatment and disposal: NGL provides water treatment and disposal services for the oil and gas industry. Companies in the energy sector depend on NGL to treat and dispose of wastewater generated during their operations. NGL earns revenue from these services, contributing to its overall financial performance.

4. Income from joint ventures and partnerships: NGL partners with other companies in joint ventures and partnerships to expand its business operations. Through these collaborations, NGL generates income from shared projects and investments. This revenue stream diversifies the company's sources of income and strengthens its position in the market.