2024 Q2 Form 10-K Financial Statement

#000150446124000013 Filed on June 06, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024 Q1 2024
Revenue $1.387B $1.630B $6.957B
YoY Change -14.16% -20.46% -19.99%
Cost Of Revenue $1.173B $1.403B $5.967B
YoY Change -14.94% -20.76% -22.0%
Gross Profit $214.1M $226.7M $989.8M
YoY Change -9.6% -18.54% -5.27%
Gross Profit Margin 15.43% 13.91% 14.23%
Selling, General & Admin $15.01M $66.16M $121.9M
YoY Change -26.01% 211.83% 69.71%
% of Gross Profit 7.01% 29.18% 12.31%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $65.19M $69.84M $282.7M
YoY Change -10.95% -5.43% -2.8%
% of Gross Profit 30.46% 30.81% 28.57%
Operating Expenses $150.7M $208.4M $701.8M
YoY Change -9.95% 17.04% 4.17%
Operating Profit $74.95M $18.32M $177.6M
YoY Change 4.07% -81.73% -38.59%
Interest Expense $69.74M -$91.08M $269.9M
YoY Change 17.17% 47.89% -2.0%
% of Operating Profit 93.05% -497.25% 152.01%
Other Income/Expense, Net $167.0K $1.662M $2.793M
YoY Change -45.42% 9676.47% -90.28%
Pretax Income $5.679M -$235.0M -$140.7M
YoY Change -71.18% 611.06% -366.7%
Income Tax -$4.796M $1.769M $2.405M
% Of Pretax Income -84.45%
Net Earnings $9.683M -$272.2M -$143.8M
YoY Change -49.83% 302.25% -379.76%
Net Earnings / Revenue 0.7% -16.7% -2.07%
Basic Earnings Per Share
Diluted Earnings Per Share -$0.14 -$2.05 -$2.14
COMMON SHARES
Basic Shares Outstanding 132.5M shares 132.5M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2024 Q2 2024 Q1 2024
SHORT-TERM ASSETS
Cash & Short-Term Investments $5.269M $38.91M $38.91M
YoY Change -32.33% 616.42% 616.42%
Cash & Equivalents $5.269M $38.91M $38.91M
Short-Term Investments
Other Short-Term Assets $72.39M $193.5M $193.5M
YoY Change -14.17% 97.3% 97.3%
Inventory $158.7M $130.9M $130.9M
Prepaid Expenses
Receivables $752.4M $814.1M $814.1M
Other Receivables $1.501M $1.501M $1.501M
Total Short-Term Assets $990.3M $1.179B $1.179B
YoY Change -16.28% -8.78% -8.78%
LONG-TERM ASSETS
Property, Plant & Equipment $2.125B $2.097B $2.194B
YoY Change -3.25% -5.7% -5.18%
Goodwill $634.3M $634.3M
YoY Change -10.96% -10.96%
Intangibles $928.7M $940.0M
YoY Change -10.6% -11.21%
Long-Term Investments $19.22M $20.31M $20.31M
YoY Change -4.14% -3.72% -3.72%
Other Assets $50.17M $52.74M $47.96M
YoY Change -12.64% -9.04% -2.88%
Total Long-Term Assets $3.849B $3.841B $3.841B
YoY Change -6.63% -7.75% -7.75%
TOTAL ASSETS
Total Short-Term Assets $990.3M $1.179B $1.179B
Total Long-Term Assets $3.849B $3.841B $3.841B
Total Assets $4.840B $5.020B $5.020B
YoY Change -8.78% -7.99% -7.99%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $655.2M $707.6M $707.6M
YoY Change -15.32% -23.72% -23.72%
Accrued Expenses $175.5M $213.8M $142.1M
YoY Change 10.1% 59.98% 16.2%
Deferred Revenue $25.06M $16.93M
YoY Change 33.49% 16.62%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $7.846M $7.000M $7.100M
YoY Change 7746.0% 7000.0%
Total Short-Term Liabilities $864.6M $977.3M $977.3M
YoY Change -12.39% -11.96% -11.96%
LONG-TERM LIABILITIES
Long-Term Debt $3.018B $2.844B $2.844B
YoY Change 7.66% -0.49% -0.49%
Other Long-Term Liabilities $124.1M $129.2M $199.7M
YoY Change 10.8% 16.15% 17.74%
Total Long-Term Liabilities $3.142B $2.973B $3.044B
YoY Change 2706.35% 0.13% 0.53%
TOTAL LIABILITIES
Total Short-Term Liabilities $864.6M $977.3M $977.3M
Total Long-Term Liabilities $3.142B $2.973B $3.044B
Total Liabilities $4.007B $3.950B $4.039B
YoY Change 264.66% -3.16% -2.77%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $745.0M $980.9M $980.9M
YoY Change
Total Liabilities & Shareholders Equity $4.840B $5.020B $5.020B
YoY Change -8.78% -7.99% -7.99%

Cashflow Statement

Concept 2024 Q2 2024 Q1 2024
OPERATING ACTIVITIES
Net Income $9.683M -$272.2M -$143.8M
YoY Change -49.83% 302.25% -379.76%
Depreciation, Depletion And Amortization $65.19M $69.84M $282.7M
YoY Change -10.95% -5.43% -2.8%
Cash From Operating Activities -$18.06M $152.2M $376.2M
YoY Change -132.77% -36.13% -15.5%
INVESTING ACTIVITIES
Capital Expenditures $59.92M $32.40M $152.3M
YoY Change 67.38% 27.54% 3.07%
Acquisitions
YoY Change
Other Investing Activities $88.14M -$2.036M $68.53M
YoY Change 156.52% -101.26% -67.67%
Cash From Investing Activities $28.22M -$34.43M -$83.76M
YoY Change -2058.08% -125.27% -230.49%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$43.80M -79.62M -$258.9M
YoY Change -14.65% -78.69% -49.01%
NET CHANGE
Cash From Operating Activities -$18.06M 152.2M $376.2M
Cash From Investing Activities $28.22M -34.43M -$83.76M
Cash From Financing Activities -$43.80M -79.62M -$258.9M
Net Change In Cash -$33.64M 38.17M $33.48M
YoY Change -1528.45% 4155.41% 1980.67%
FREE CASH FLOW
Cash From Operating Activities -$18.06M $152.2M $376.2M
Capital Expenditures $59.92M $32.40M $152.3M
Free Cash Flow -$77.98M $119.8M $223.9M
YoY Change -503.84% -43.72% -24.73%

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CapitalExpendituresIncurredButNotYetPaid
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CapitalExpendituresIncurredButNotYetPaid
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CapitalExpendituresIncurredButNotYetPaid
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CY2024 us-gaap Nature Of Operations
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Organization and Operations<div style="text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">NGL Energy Partners LP, a Delaware master limited partnership (“we,” “us,” “our,” or the “Partnership”), was formed in September 2010. NGL Energy Holdings LLC serves as our general partner (“GP”). At March 31, 2024, our operations included three segments:</span></div><div style="text-indent:36pt"><span><br/></span></div><div style="margin-bottom:6pt;padding-left:54pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">Our Water Solutions segment transports, treats, recycles and disposes of produced and flowback water generated from crude oil and natural gas production. We also sell produced water for reuse and recycle and brackish non-potable water to our producer customers to be used in their crude oil exploration and production activities. As part of processing water, we aggregate and sell recovered crude oil, also known as skim oil. We also dispose of solids such as tank bottoms, drilling fluids and drilling muds and perform other ancillary services such as truck and frac tank washouts. Our activities in this segment are underpinned by long-term, fixed fee contracts and acreage dedications, some of which contain minimum volume commitments with leading oil and gas companies including large, investment grade producer customers.</span></div><div style="margin-bottom:6pt;padding-left:54pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">Our Crude Oil Logistics segment purchases crude oil from producers and marketers and transports it to refineries or for resale at pipeline injection stations, storage terminals, barge loading facilities, rail facilities, refineries, and other trade hubs, and provides storage, terminaling and transportation services through its owned assets. Our activities in this segment are supported by certain long-term, fixed rate contracts which include minimum volume commitments on our owned and leased pipelines and storage tanks.</span></div><div style="padding-left:54pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">Our Liquids Logistics segment conducts supply operations for natural gas liquids, refined petroleum products and biodiesel to a broad range of commercial, retail and industrial customers across the United States and Canada. These operations are conducted through our 23 owned terminals, third-party storage and terminal facilities, nine common carrier pipelines and a fleet of leased railcars. We also provide services for marine exports of butane through our facility located in Chesapeake, Virginia, and we also own a propane pipeline in Michigan. We attempt to reduce our exposure to price fluctuations by using back-to-back physical contracts and pre-sale agreements that allow us to lock in a margin on a percentage of our winter volumes. We also enter into financially settled derivative contracts as economic hedges of our physical inventory, physical sales and physical purchase contracts.</span></div>
CY2024 us-gaap Number Of Reportable Segments
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3
CY2024 us-gaap Use Of Estimates
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<div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Use of Estimates</span></div><div><span><br/></span></div><div style="text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amount of assets and liabilities reported at the date of the consolidated financial statements and the amount of revenues and expenses reported during the periods presented.</span></div><div style="text-indent:36pt"><span><br/></span></div><div style="text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Critical accounting estimates we make in the preparation of our consolidated financial statements include, among others, determining the impairment of goodwill and long-lived assets, useful lives and recoverability of property, plant and equipment and amortizable intangible assets, the fair value of derivative instruments, estimating certain revenues, the fair value of asset retirement obligations, the fair value of assets and liabilities acquired in acquisitions, the recoverability of inventories, the collectability of accounts and notes receivable and accruals for environmental matters. Although we believe these estimates are reasonable, actual results could differ from those estimates.</span></div>
CY2024 ngl Minimum Percentageof Qualifying Incomeof Non Taxable Subsidiaries
MinimumPercentageofQualifyingIncomeofNonTaxableSubsidiaries
0.90
CY2024 ngl Minimum Percentageof Qualifying Incomeof Non Taxable Subsidiaries
MinimumPercentageofQualifyingIncomeofNonTaxableSubsidiaries
0.90
CY2024Q1 us-gaap Deferred Tax Liabilities
DeferredTaxLiabilities
38000000 usd
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DeferredTaxLiabilities
40700000 usd
CY2024 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
1200000 usd
CY2024 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.317
CY2023 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
2300000 usd
CY2023 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.275
CY2023Q1 us-gaap Unrecognized Tax Benefits
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0 usd
CY2024Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
0 usd
CY2024 us-gaap Concentration Risk Credit Risk
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<div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Accounts Receivable and Concentration of Credit Risk</span></div><div><span><br/></span></div><div style="text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We operate in the United States and Canada. We grant unsecured credit to customers under normal industry standards and terms, and have established policies and procedures that allow for an evaluation of each customer’s creditworthiness as well as general economic conditions. See Note 16 for a further discussion of our allowance for expected credit losses. </span></div><div style="text-indent:36pt"><span><br/></span></div><div style="text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We execute master netting agreements with certain customers to mitigate our credit risk. Receivables and payables are reflected at a net balance to the extent a master netting agreement is in place and we intend to settle on a net basis.</span></div>We did not have any customers that represented over 10% of our consolidated revenues for the years ended March 31, 2024 or 2023. CITGO Petroleum Corporation accounted for 12.8% of our consolidated revenues for the year ended March 31, 2022. The majority of the revenue for this customer pertains to our Crude Oil Logistics segment activities.
CY2024Q1 us-gaap Energy Related Inventory Petroleum
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44056000 usd
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EnergyRelatedInventoryPetroleum
49586000 usd
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34225000 usd
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EnergyRelatedInventoryPropaneGas
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142607000 usd
CY2024Q1 us-gaap Cumulative Earnings Deficit
CumulativeEarningsDeficit
14700000 usd
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19800000 usd
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20305000 usd
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21090000 usd
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37861000 usd
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4776000 usd
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52738000 usd
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49362000 usd
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14752000 usd
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34708000 usd
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EmployeeRelatedLiabilitiesCurrent
27013000 usd
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18003000 usd
CY2023Q1 us-gaap Taxes Payable Current
TaxesPayableCurrent
11777000 usd
CY2024Q1 ngl Product Exchange Liabilities Current
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CY2024 us-gaap Prior Period Reclassification Adjustment Description
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<div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Reclassifications</span></div><div><span><br/></span></div><div style="text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We have reclassified certain prior period financial statement information to be consistent with the classification methods used in the current fiscal year. At March 31, 2024 and 2023, ethanol inventory is included in Other in “Inventories” above. Also, for the years ended March 31, 2024, 2023 and 2022, certain revenues are included in Disposal Services Fees in Note 11. These reclassifications did not impact previously reported amounts of assets, liabilities, equity, net income or cash flows.</span></div>
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For every dollar that employees contribute up to 4% of their eligible compensation (as defined in the plan), we contribute one dollar, plus 50 cents for every dollar employees contribute between 4 and 6% of their eligible compensation (as defined in the plan). Our matching contributions vest over an employee’s first two years of employment, subject to a participant’s continued service.
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