TULSA, Okla.–(BUSINESS WIRE)–NGL Energy Partners LP (NYSE: NGL) (“NGL” or the “Partnership”) plans to issue its fiscal third quarter ended December 31, 2019 earnings press release pre-market open on Thursday, February 6, 2020. Members of NGL’s management team will discuss its financial results for the quarter on an earnings call following this release, which is scheduled for Thursday, February 6, 2020 at 10:00 am CST.
Analysts, investors, and other interested parties may access the conference call by dialing (800) 291-4083 and providing access code 2980107. An archived audio replay of the call will be available for 7 days beginning at 1:00 pm CST on February 6, 2020, which can be accessed by dialing (855) 859-2056 and providing access code 4747666. An updated investor presentation will be posted on NGL’s Investor Relations website at www.nglenergypartners.com/investor-relations/presentations after the filing of the Partnership’s Quarterly Report on Form 10-Q on and around February 10, 2020.
Recent Developments Update
The Partnership is also providing an update on recent developments including the following:
- Biodiesel tax credit incentive in place through 2022
- Revolving credit facility capacity increased with the addition of two new banks; and
- Mid-Continent refined products business liquidated, continuing the Partnership’s efforts to simplify its business and reduce working capital needs
Biodiesel Income Tax Credit Update
On December 19, 2019, the United States government passed two spending bills, which included a provision for the extension of the $1.00 per barrel biodiesel income tax credit for all qualifying transactions from January 1, 2018 through December 31, 2022. The Partnership had established approximately $31.4 million of these tax credits related to the period from January 1, 2018 through December 31, 2019. The Partnership expects to receive the cash proceeds from these tax credits by mid-year 2020. The Partnership will recognize the benefit of these tax credits in its December 31, 2019 quarterly results. In addition, the Partnership expects approximately $6.4 million of additional biodiesel tax credits related to calendar year 2020.
Revolving Credit Facility upsized by $125 million to provide financial flexibility
On December 30, 2019, the Partnership increased the size of its Revolving Credit Facility $125 million by utilizing a portion of its $275 million accordion feature, creating additional financial flexibility. Two new lenders joined the facility in conjunction with this upsize, bringing total borrowing capacity to $1.915 billion.
Additional Refined Products business exited continuing efforts to simplify business profile
Consistent with the Partnership’s previously announced strategy to simplify its business, lessen working capital needs and reduce volatility in earnings, the Partnership recently completed an assignment of its mid-continent refined products storage and a liquidation of the inventory and open forward positions related to this business to a third-party. The Partnership expects to reflect the results of this business as discontinued operations in its December 31, 2019 financial statements.
Certain matters contained in this press release include “forward-looking statements.” All statements, other than statements of historical fact, included in this press release may constitute forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include, but are not limited to, the risk factors discussed from time to time in each of our documents and reports filed with the SEC.
Readers are cautioned not to place undue reliance on any forward-looking statements contained in this press release, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements.
About NGL Energy Partners LP
NGL Energy Partners LP is a Delaware limited partnership. NGL owns and operates a vertically integrated energy business with three primary business segments: Crude Oil Logistics, Water Solutions, and Liquids. For further information, visit the Partnership’s website at www.nglenergypartners.com.
NGL Energy Partners LP
Trey Karlovich, 918-481-1119
Chief Financial Officer and Executive Vice President
Linda Bridges, 918-481-1119
Senior Vice President – Finance and Treasurer