NGL Energy Partners Provides Update and Announces Quarterly Distributions - Seite 2

“We have invested significant capital into our business over the past year, including the build-out of our fully integrated, large diameter water distribution system in the Northern Delaware Basin, which can transport and dispose of over three million barrels of water per day,” added Krimbill. “We believe our existing footprint has more than adequate disposal capacity to handle our producer customers’ requirements for the next several years, allowing us to obtain additional producer acreage dedications and continue to grow our market share, with limited capital requirements.”

Recent Financial Initiatives

The Partnership initiated certain financial objectives, including the sale of certain assets, to enhance liquidity and accelerate de-leveraging of the balance sheet. The Partnership recently amended its credit facility to re-allocate availability between its revolving credit facilities, reducing its working capital facility to $350 million and increasing its expansion facility to $1.565 billion, noting no change in the overall $1.915 billion capacity of the facility. This re-allocation was driven by the exit of the Mid-Continent and Gas Blending Refined Products businesses during the Fiscal 2020 fourth quarter, which will reduce working capital borrowing needs going forward. The Partnership continues to evaluate and execute on financial strategies to meet its objectives.

Partnership Distributions

Due to the current unprecedented market conditions, the Board determined it was prudent to enhance NGL’s balance sheet while maintaining a strong capital structure and liquidity. The Board has declared a quarterly distribution of $0.20 per common unit, or $0.80 per common unit on an annualized basis, for the quarter ended March 31, 2020. This cash distribution is payable on May 15, 2020 to common unitholders of record at the close of business on May 7, 2020. The Board will, as it always does, continue to evaluate the distribution on a quarterly basis going forward as this approximately $100 million reduction on an annualized basis will be used to increase liquidity and de-lever the balance sheet and is expected to improve the Partnership’s common unit coverage ratio to over 2.0x.