NGL Energy Partners LP Announces Capital Plans and Distribution Policy

TULSA, Okla.--(BUSINESS WIRE)--

NGL Energy Partners LP NGL today reported the following plans with respect to distribution policy, capital needs and liquidity:

• NGL is not contemplating a distribution cut. However it anticipates not increasing its distributions per common unit during calendar year 2016. NGL is targeting a distribution coverage ratio of 1.2 – 1.4x in fiscal year 2017, during which it expects to place the Grand Mesa Pipeline and additional Sawtooth assets into service.
• NGL expects total CAPEX requirements of $350-$400 million over the next 12-18 months to fund organic projects, including Grand Mesa. NGL anticipates that during this period, its acquisition activity will be curtailed to the extent that the higher cost of capital in the current commodity price environment would result in acquisitions not being accretive.
• The Partnership expects to have sufficient liquidity to fund its capital needs through a combination of preferred equity, asset sales, bank debt, and unsecured indebtedness.
• NGL's General Partner is debt-free and can support the MLP.

About NGL Energy Partners LP

NGL Energy Partners LP is a Delaware limited partnership. NGL owns and operates a vertically integrated energy business with five primary businesses: crude oil logistics, water solutions, liquids, retail propane and refined products and renewables. For further information visit NGL's website at www.nglenergypartners.com.

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 its expectations as reflected in the forward-looking statements are reasonable, NGL can give no assurance that such expectations 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 filings with the Securities and Exchange Commission. 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.

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