NGL Energy Partners LP Announces Quarterly Cash Distribution for the Class B, Class C, and Class D Preferred Units

Rhea-AI Summary

NGL Energy Partners LP (NYSE: NGL) has announced quarterly distributions for its preferred unit holders. The distributions will be paid on April 15, 2025, to holders of record on April 1, 2025, as follows:

• Class B Preferred Units will receive $0.7377 per unit (11.803% floating rate)
• Class C Preferred Units will receive $0.7320 per unit (11.713% floating rate)
• Class D Preferred Units will receive a total distribution of $19,243,349.94

Positive

• Consistent quarterly distribution payments maintained for all preferred unit classes
• Substantial Class D distribution of $19.2 million demonstrates strong cash flow allocation to preferred holders

Negative

• High preferred distribution rates (11.803% and 11.713%) indicate elevated cost of capital

Insights

Financial Analyst

NGL Energy Partners LP has announced its quarterly cash distributions for three classes of preferred units. The partnership will distribute $0.7377 per unit to Class B Preferred unitholders and $0.7320 per unit to Class C Preferred unitholders. Additionally, a substantial $19.24 million total distribution is scheduled for Class D Preferred unitholders.

What stands out in this announcement is the relatively high yield rates attached to these preferred units - 11.803% for Class B and 11.713% for Class C units. These rates are considerably higher than typical preferred securities in today's market, reflecting the higher risk premium investors demand from this midstream energy partnership.

The $19.24 million quarterly outflow for Class D Preferred units represents a significant financial commitment when compared to NGL's market capitalization of approximately $622 million. This single preferred class distribution accounts for about 3.1% of the company's market value in just one quarter.

This announcement represents the partnership meeting its contractual obligations to preferred unitholders. The ability to maintain these distributions indicates NGL is generating sufficient cash flow to satisfy these high-priority payment commitments. However, the announcement doesn't provide information about distributions to common unitholders or insights into the partnership's overall financial performance.

TULSA, Okla.--(BUSINESS WIRE)-- NGL Energy Partners LP (NYSE: NGL) announced today that the Board of Directors of its general partner declared a distribution for the quarter ending March 31, 2025 to be paid to the holders of the Partnership’s 11.803% Class B Floating Rate Cumulative Redeemable Perpetual Preferred Units (“Class B Preferred Units”) and the 11.713% Class C Floating Rate Cumulative Redeemable Perpetual Preferred Units (“Class C Preferred Units”) in accordance with the terms outlined in NGL’s partnership agreement. Each of the Class B Preferred Units will receive a quarterly distribution of $0.7377 and each of the Class C Preferred Units will receive a quarterly distribution of $0.7320 per unit on April 15, 2025, to holders of record on April 1, 2025.

Additionally, the Board of Directors declared a quarterly cash distribution for the Class D Preferred Units in the amount of $19,243,349.94 for the quarter ending March 31, 2025. The Class D Preferred distribution will also be made on April 15, 2025, to the holders of record on April 1, 2025.

Forward-Looking 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 forwarding-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 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, a Delaware limited partnership, is a diversified midstream energy company that transports, stores, markets and provides other logistics services for crude oil, natural gas liquids and other products and transports, treats and disposes of produced water generated as part of the oil and natural gas production process.

For further information, visit the Partnership’s website at www.nglenergypartners.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250318398169/en/

Investor Contact:

NGL Energy Partners LP

David Sullivan, 918-495-4631

Vice President - Finance

David.Sullivan@nglep.com

Source: NGL Energy Partners LP

FAQ

What is the distribution amount for NGL Energy's Class B Preferred Units in Q1 2025?

NGL Energy's Class B Preferred Units will receive a quarterly distribution of $0.7377 per unit for Q1 2025.

When will NGL Energy Partners pay its Q1 2025 preferred unit distributions?

NGL Energy Partners will pay the preferred unit distributions on April 15, 2025, to holders of record as of April 1, 2025.

How much is NGL Energy's Class D Preferred Unit total distribution for Q1 2025?

NGL Energy's Class D Preferred Unit total distribution is $19,243,349.94 for Q1 2025.

What is the distribution rate for NGL Energy's Class C Preferred Units?

NGL Energy's Class C Preferred Units have an 11.713% floating rate, with a quarterly distribution of $0.7320 per unit.