NGL Energy Partners LP Announces Redemption of 7.5% Senior Notes due 2023

Rhea-AI Summary

NGL Energy Partners LP (NYSE:NGL) announced plans to redeem $203.4 million of its 7.5% Senior Notes due 2023. On March 31, 2023, holders will receive 100% of the principal amount plus any accrued interest. This redemption signifies the complete extinguishment of the Notes, as interest will cease to accrue after the Redemption Date. NGL cautions that forward-looking statements made in the release are subject to various risks and uncertainties that could significantly affect operations and financial performance, as detailed in their public filings.

Positive

• Redemption of $203.4 million in Senior Notes indicates improved financial management and reduced debt obligations.
• Completion of the redemption will leave no outstanding Senior Notes, potentially enhancing investor confidence.

Negative

• None.

TULSA, Okla.--(BUSINESS WIRE)-- NGL Energy Partners LP (NYSE:NGL) (“NGL,” “our,” “we,” or the “Partnership”) today announced that it intends to call for redemption, all $203,400,000 aggregate outstanding principal amount of its 7.5% Senior Notes due 2023 (the “Notes”). On March 31, 2023 (the “Redemption Date”), registered holders of such Notes will receive a redemption payment of equal to 100% of the principal amount of such Notes; and accrued and unpaid interest on such Notes, if any, to the Redemption Date.

Upon payment in full on the Redemption Date (the “Redemption Payment”), interest on the Notes will cease to accrue on and after the Redemption Date. Following the payment on the Redemption Date, there will be no Notes that remain outstanding.

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.

NGL provides Adjusted EBITDA guidance that does not include certain charges and costs, which in future periods are generally expected to be similar to the kinds of charges and costs excluded from Adjusted EBITDA in prior periods, such as income taxes, interest and other non-operating items, depreciation and amortization, net unrealized gains and losses on derivatives, lower of cost or net realizable value adjustments, gains and losses on disposal or impairment of assets, gains and losses on early extinguishment of liabilities, equity-based compensation expense, acquisition expense, revaluation of liabilities and items that are unusual in nature or infrequently occurring. The exclusion of these charges and costs in future periods will have a significant impact on the Partnership’s Adjusted EBITDA, and the Partnership is not able to provide a reconciliation of its Adjusted EBITDA guidance to net income (loss) without unreasonable efforts due to the uncertainty and variability of the nature and amount of these future charges and costs and the Partnership believes that such reconciliation, if possible, would imply a degree of precision that would be potentially confusing or misleading to investors.

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/20230222006035/en/

David Sullivan, 918-481-1119

Vice President - Finance

David.Sullivan@nglep.com

Source: NGL Energy Partners LP

FAQ

What is the redemption amount for NGL Energy Partners LP Senior Notes?

NGL Energy Partners LP is redeeming $203.4 million of its 7.5% Senior Notes due 2023.

When will NGL Energy Partners LP redeem its Senior Notes?

The redemption will occur on March 31, 2023.

What will happen to interest on NGL's Senior Notes after the redemption date?

Interest on the Senior Notes will cease to accrue after the Redemption Date.

How does the redemption of Senior Notes affect NGL's financial situation?

The redemption indicates improved financial management and reduces the Partnership's debt obligations.

What risks are associated with the forward-looking statements in NGL's press release?

The forward-looking statements involve risks and uncertainties that could significantly affect operations and financial performance.