NGL Energy Partners Provides Update and Announces Quarterly Distributions - Seite 3

“Our decision to reduce the common unit distribution by 48.7% was made based on NGL’s and the Board’s priorities of maintaining a strong balance sheet and liquidity as we manage through these uncertain times,” stated Krimbill. “This reduction was made despite NGL’s strong distribution coverage for the quarter and expectations for improved coverage going forward. We believe it is in the best interest of all our stakeholders that during this period we enhance our financial flexibility and preserve liquidity. Our objectives are not achieved solely on the back of a distribution reduction. It is a combination of initiatives, including limiting capital expenditures, decreasing expenses and evaluating and executing on other deleveraging transactions, both financial and asset-based, that will accomplish our goals. In the meantime, we will continue to take advantage of operational and capital market opportunities resulting from current market dynamics to best position NGL going forward.”

Additionally, the Board declared a Class D Preferred cash distribution of $6.1 million, which amount represents 50% of the Class D Distribution Amount, to be paid to the holders of the Class D Preferred Units. The Class D Stated Value Units will also automatically increase by the non-cash accretion amount of $6.1 million for the quarter ended March 31, 2020. The Class D Preferred distribution will also be made on May 15, 2020.

Forward Looking Statements

This press release includes “forward-looking statements.” All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. While NGL believes such forward-looking statements are reasonable, NGL cannot assure they will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings with the Securities and Exchange Commission. Other factors that could impact any forward-looking statements are those risks described in NGL’s annual report on Form 10-K, quarterly reports on Form 10-Q, and other public filings. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors.” NGL undertakes no obligation to publicly update or revise any forward-looking statements except as required by law.