Market Overview

NGL Energy Partners LP Announces First Quarter Fiscal 2019 Financial Results

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NGL Energy Partners LP (NYSE:NGL) ("NGL," "our," "we," or the
"Partnership") today reported a net loss for the quarter ended June 30,
2018 of $169.3 million, compared to a net loss of $63.7 million for the
quarter ended June 30, 2017. The net loss for the current quarter
includes a loss on the disposal and impairment of assets of $101.3
million and expenses related to the accrual for the settlement of
litigation of $35.0 million.

Highlights for the quarter include:

  • Adjusted EBITDA for the first quarter of Fiscal 2019 was $80.3
    million, compared to $38.9 million for the first quarter of Fiscal
    2018, an increase of over 106%
  • Completed the sale of virtually all of our remaining Retail Propane
    segment to Superior Plus Corp. ("Superior") for $900 million in gross
    proceeds (adjusted for working capital) on July 10, 2018
  • Confirms Fiscal 2019 Adjusted EBITDA guidance with a target of $450
    million remains unchanged
  • Growth capital expenditures, including $125.9 million in
    acquisitions of Water Solutions facilities and related assets, and
    other investments, totaled approximately $193.2 million during the
    first quarter (excluding Retail Propane segment)

"Our financial results for the quarter are right in line with our
expectations and we anticipate increasingly stronger quarterly results
for the remainder of this fiscal year," stated CEO Mike Krimbill. "Our
balance sheet and liquidity are much stronger following the closing of
the retail propane sale in July and we are well positioned for the
future. Each of our business units is performing well and with the
acquisitions we have recently completed in the Water Solutions business,
I am confident about our growth opportunities and the execution of our
strategic direction."

Quarterly Results of Operations

The following table summarizes operating income (loss) and Adjusted
EBITDA by operating segment for the periods indicated:

   
Quarter Ended
June 30, 2018     June 30, 2017

Operating
Income (Loss)

   

Adjusted
EBITDA

Operating
Income (Loss)

   

Adjusted
EBITDA

(in thousands)
Crude Oil Logistics $ (99,738 ) $ 30,441 $ 4,357 $ 25,836
Refined Products and Renewables 29,022 3,763 14,496 (7,799 )
Liquids 2,623 10,841 (8,772 ) (1,240 )
Water Solutions 969 38,597 (1,154 ) 22,145
Corporate and Other (17,430 ) (8,880 ) (17,726 ) (6,751 )
Discontinued Operations (1)   5,552     6,738  
Total $ (84,554 ) $ 80,314   $ (8,799 ) $ 38,929  

_________

(1)   On July 10, 2018, we completed the sale of virtually all of our
remaining Retail Propane segment to Superior for total consideration
of $896.5 million in cash after adjusting for estimated working
capital. As a result, we have classified the assets, liabilities and
redeemable noncontrolling interest as held for sale and the results
of operations have been classified as discontinued operations.
 

The tables included in this release reconcile operating income (loss) to
Adjusted EBITDA, a non-GAAP financial measure, for each of our operating
segments.

Crude Oil Logistics

The Partnership's Crude Oil Logistics segment generated Adjusted EBITDA
of $30.4 million during the quarter ended June 30, 2018, compared to
Adjusted EBITDA of $25.8 million during the quarter ended June 30, 2017.
Results for the first quarter of Fiscal 2019 improved compared to the
same quarter in Fiscal 2018 primarily due to increased volumes on Grand
Mesa Pipeline. The Partnership sold a portion of its rights and
obligations to ship on certain third-party pipelines during the quarter
and recognized a loss of $105.0 million on the transaction while
eliminating its future commitments.

The Partnership's Grand Mesa Pipeline contributed Adjusted EBITDA of
approximately $44.7 million during the first quarter of Fiscal 2019, an
increase of $14.7 million when compared to Adjusted EBITDA of
approximately $30.0 million during the same quarter of last year, due to
increased volumes related to production growth in the DJ Basin. Physical
volumes averaged approximately 110,000 barrels per day and financial
volumes averaged approximately 112,000 barrels per day during the
quarter ended June 30, 2018.

Refined Products and Renewables

The Partnership's Refined Products and Renewables segment generated
Adjusted EBITDA of $3.8 million during the quarter ended June 30, 2018,
compared to Adjusted EBITDA of $(7.8) million during the quarter ended
June 30, 2017. The results for the quarter ended June 30, 2018 were
positively impacted by an increase in prices, volumes and product
margins of refined products due to stronger demand at our wholesale
locations, especially in the Southeast and West Texas.

Refined product barrels sold during the quarter ended June 30, 2018
totaled approximately 52.5 million barrels, an increase of approximately
10.2 million barrels compared to the same period in the prior year due
to an increase in bulk sales volumes. Renewable barrels sold during the
quarter ended June 30, 2018 totaled approximately 0.9 million, a
decrease of approximately 0.8 million barrels compared to the same
period in the prior year.

Liquids

The Partnership's Liquids segment generated Adjusted EBITDA of $10.8
million during the quarter ended June 30, 2018, compared to Adjusted
EBITDA of $(1.2) million during the quarter ended June 30, 2017. Total
product margin per gallon was $0.031 for the quarter ended June 30,
2018, compared to $0.004 for the quarter ended June 30, 2017, as a
result of higher prices, increased demand, higher than anticipated
production and increased railcar utilization.

Propane volumes increased by approximately 9.1 million gallons, or 4.0%,
during the quarter ended June 30, 2018 compared to the quarter ended
June 30, 2017. Butane volumes increased by approximately 21.5 million
gallons, or 23.5%, during the quarter ended June 30, 2018 compared to
the quarter ended June 30, 2017. Other Liquids volumes increased by
approximately 26.4 million gallons, or 29.1%, during the quarter ended
June 30, 2018 compared to the same period in the prior year. The
increase in overall volumes is primarily attributable to an increase in
volume moved by railcars due to third-party pipeline infrastructure
issues.

Water Solutions

The Partnership's Water Solutions segment generated Adjusted EBITDA of
$38.6 million during the quarter ended June 30, 2018, compared to
Adjusted EBITDA of $22.1 million during the quarter ended June 30, 2017.
The Partnership processed approximately 920,000 barrels of wastewater
per day during the quarter ended June 30, 2018, a 47.4% increase when
compared to approximately 624,000 barrels of wastewater per day during
the quarter ended June 30, 2017.

Processed water volumes have increased in each basin in which the
Partnership operates as the segment continued to benefit from high crude
oil prices, increased rig activity and crude oil production. Revenues
from recovered hydrocarbons totaled $20.2 million for the quarter ended
June 30, 2018, an increase of $10.3 million over the prior year period,
related to an increase in the volume of wastewater processed and
increased crude oil prices.

Retail Propane - Discontinued Operations

The Partnership's Retail Propane segment generated Adjusted EBITDA of
$5.6 million during the quarter ended June 30, 2018, compared to
Adjusted EBITDA of $6.7 million during the quarter ended June 30, 2017.
Propane sold during the quarter ended June 30, 2018 totaled 22.7 million
gallons and decreased by approximately 4.5 million gallons, compared to
the quarter ended June 30, 2017, primarily due to the sale of a portion
of our Retail Propane segment on March 30, 2018. Distillates sold during
the quarter ended June 30, 2018 were relatively flat compared to the
quarter ended June 30, 2017. Total product margin per gallon was $1.013
for the quarter ended June 30, 2018, compared to $0.976 for the quarter
ended June 30, 2017. On July 10, 2018, we completed the sale of
virtually all of our remaining Retail Propane segment to Superior for
total consideration of $896.5 million in cash after adjusting for
estimated working capital. As a result, we have classified the assets,
liabilities and redeemable noncontrolling interest as held for sale and
the results of operations have been classified as discontinued
operations.

Corporate and Other

Adjusted EBITDA for Corporate and Other was $(8.9) million during the
quarter ended June 30, 2018, compared to Adjusted EBITDA of $(6.8)
million during the quarter ended June 30, 2017. The decrease was due
primarily to increased legal costs related to certain litigation matters.

Capitalization and Liquidity

Total long-term debt outstanding, excluding working capital borrowings,
was $1.972 billion at June 30, 2018 compared to $1.710 billion at
March 31, 2018, an increase of $261.6 million, primarily as a result of
acquisitions and growth capital projects within our Water Solutions
segment. Working capital borrowings totaled $1.061 billion at June 30,
2018 compared to $969.5 million at March 31, 2018, an increase of $91.0
million driven primarily by increases in inventory prices during the
quarter. Total liquidity (cash plus available capacity on our revolving
credit facility) was approximately $324.3 million as of June 30, 2018.
The $896.5 million in cash proceeds from the sale of the Retail Propane
segment were initially utilized to reduce the outstanding balance on the
Partnership's revolving credit facility on July 10, 2018.

First Quarter Conference Call Information

A conference call to discuss NGL's results of operations is scheduled
for 11:00 am Eastern Time (10:00 am Central Time) on Tuesday, August 7,
2018. Analysts, investors, and other interested parties may access the
conference call by dialing (800) 291-4083 and providing access code
8886005. An archived audio replay of the conference call will be
available for 7 days beginning at 11:00 am Eastern Time (10:00 am
Central Time) on August 8, 2018, which can be accessed by dialing
(855) 859-2056 and providing access code 8886005.

Non-GAAP Financial Measures

NGL defines EBITDA as net income (loss) attributable to NGL Energy
Partners LP, plus interest expense, income tax expense (benefit), and
depreciation and amortization expense. NGL defines Adjusted EBITDA as
EBITDA excluding net unrealized gains and losses on derivatives, lower
of cost or market 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, certain legal settlements and other. We also
include in Adjusted EBITDA certain inventory valuation adjustments
related to our Refined Products and Renewables segment, as discussed
below. EBITDA and Adjusted EBITDA should not be considered alternatives
to net loss, (loss) income from continuing operations before income
taxes, cash flows from operating activities, or any other measure of
financial performance calculated in accordance with GAAP, as those items
are used to measure operating performance, liquidity or the ability to
service debt obligations. NGL believes that EBITDA provides additional
information to investors for evaluating NGL's ability to make quarterly
distributions to NGL's unitholders and is presented solely as a
supplemental measure. NGL believes that Adjusted EBITDA provides
additional information to investors for evaluating NGL's financial
performance without regard to NGL's financing methods, capital structure
and historical cost basis. Further, EBITDA and Adjusted EBITDA, as NGL
defines them, may not be comparable to EBITDA, Adjusted EBITDA, or
similarly titled measures used by other entities.

Other than for NGL's Refined Products and Renewables segment, for
purposes of the Adjusted EBITDA calculation, NGL makes a distinction
between realized and unrealized gains and losses on derivatives. During
the period when a derivative contract is open, NGL records changes in
the fair value of the derivative as an unrealized gain or loss. When a
derivative contract matures or is settled, NGL reverses the previously
recorded unrealized gain or loss and record a realized gain or loss. NGL
does not draw such a distinction between realized and unrealized gains
and losses on derivatives of NGL's Refined Products and Renewables
segment. The primary hedging strategy of NGL's Refined Products and
Renewables segment is to hedge against the risk of declines in the value
of inventory over the course of the contract cycle, and many of the
hedges are six months to one year in duration at inception. The
"inventory valuation adjustment" row in the reconciliation table
reflects the difference between the market value of the inventory of
NGL's Refined Products and Renewables segment at the balance sheet date
and its cost. We include this in Adjusted EBITDA because the unrealized
gains and losses associated with derivative contracts associated with
the inventory of this segment, which are intended primarily to hedge
inventory holding risk and are included in net income, also affect
Adjusted EBITDA.

Distributable Cash Flow is defined as Adjusted EBITDA minus maintenance
capital expenditures, income tax expense, cash interest expense and
other. Maintenance capital expenditures represent capital expenditures
necessary to maintain the Partnership's operating capacity.
Distributable Cash Flow is a performance metric used by senior
management to compare cash flows generated by the Partnership (excluding
growth capital expenditures and prior to the establishment of any
retained cash reserves by the Board of Directors) to the cash
distributions expected to be paid to unitholders. Using this metric,
management can quickly compute the coverage ratio of estimated cash
flows to planned cash distributions. This financial measure also is
important to investors as an indicator of whether the Partnership is
generating cash flow at a level that can sustain, or support an increase
in, quarterly distribution rates. Actual distribution amounts are set by
the Board of Directors.

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 market 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 is a Delaware limited partnership. NGL owns and
operates a vertically integrated energy business with four primary
businesses: Crude Oil Logistics, Water Solutions, Liquids, and Refined
Products and Renewables. NGL completed its initial public offering in
May 2011. For further information, visit the Partnership's website at www.nglenergypartners.com.

       

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(in Thousands, except unit amounts)

 
June 30, 2018 March 31, 2018
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 13,682 $ 22,094
Accounts receivable-trade, net of allowance for doubtful accounts of
$4,385 and $4,201, respectively
1,096,596 1,026,764
Accounts receivable-affiliates 8,824 4,772
Inventories 600,486 551,303
Prepaid expenses and other current assets 135,097 128,742
Assets held for sale 515,012   517,604  
Total current assets 2,369,697 2,251,279
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of
$365,782 and $343,345, respectively
1,604,498 1,518,607
GOODWILL 1,262,971 1,204,607
INTANGIBLE ASSETS, net of accumulated amortization of $452,314 and
$433,565, respectively
907,540 913,154
INVESTMENTS IN UNCONSOLIDATED ENTITIES 1,995 17,236
LOAN RECEIVABLE-AFFILIATE 2,135 1,200
OTHER NONCURRENT ASSETS 175,138   245,039  
Total assets $ 6,323,974   $ 6,151,122  
LIABILITIES AND EQUITY
CURRENT LIABILITIES AND REDEEMABLE NONCONTROLLING INTEREST:
Accounts payable-trade $ 836,233 $ 852,839
Accounts payable-affiliates 24,874 1,254
Accrued expenses and other payables 225,617 223,504
Advance payments received from customers 21,871 8,374
Current maturities of long-term debt 646 646
Liabilities and redeemable noncontrolling interest held for sale 55,824   42,580  
Total current liabilities and redeemable noncontrolling interest 1,165,065 1,129,197
LONG-TERM DEBT, net of debt issuance costs of $19,340 and $20,645,
respectively, and current maturities
3,032,383 2,679,740
OTHER NONCURRENT LIABILITIES 63,539 173,514
 
CLASS A 10.75% CONVERTIBLE PREFERRED UNITS, 19,942,169 and
19,942,169 preferred units issued and outstanding, respectively
91,559 82,576
 
EQUITY:
General partner, representing a 0.1% interest, 121,874 and 121,594
notional units, respectively
(50,919 ) (50,819 )
Limited partners, representing a 99.9% interest, 121,752,514 and
121,472,725 common units issued and outstanding, respectively
1,740,410 1,852,495
Class B preferred limited partners, 8,400,000 and 8,400,000
preferred units issued and outstanding, respectively
202,731 202,731
Accumulated other comprehensive loss (257 ) (1,815 )
Noncontrolling interests 79,463   83,503  
Total equity 1,971,428   2,086,095  
Total liabilities and equity $ 6,323,974   $ 6,151,122  
 
   

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(in Thousands, except unit and per unit amounts)

 
Three Months Ended June 30,
2018     2017
REVENUES:
Crude Oil Logistics $ 783,830 $ 504,915
Water Solutions 76,145 46,967
Liquids 459,897 294,025
Refined Products and Renewables 4,524,407 2,884,637
Other 155   161  
Total Revenues 5,844,434 3,730,705
COST OF SALES:
Crude Oil Logistics 748,245 469,470
Water Solutions 14,269 153
Liquids 440,515 287,285
Refined Products and Renewables 4,492,858 2,871,702
Other 269   73  
Total Cost of Sales 5,696,156 3,628,683
OPERATING COSTS AND EXPENSES:
Operating 56,262 47,836
General and administrative 22,390 22,385
Depreciation and amortization 52,045 52,417
Loss (gain) on disposal or impairment of assets, net 101,335 (11,817 )
Revaluation of liabilities 800    
Operating Loss (84,554 ) (8,799 )
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated entities 104 1,816
Interest expense (46,268 ) (49,104 )
Loss on early extinguishment of liabilities, net (137 ) (3,281 )
Other (expense) income, net (33,742 ) 1,775  
Loss From Continuing Operations Before Income Taxes (164,597 ) (57,593 )
INCOME TAX EXPENSE (651 ) (456 )
Loss From Continuing Operations (165,248 ) (58,049 )
Loss From Discontinued Operations, net of Tax (4,041 ) (5,658 )
Net Loss (169,289 ) (63,707 )
LESS: NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 345 (52 )
LESS: NET LOSS ATTRIBUTABLE TO REDEEMABLE NONCONTROLLING INTERESTS 398   397  
NET LOSS ATTRIBUTABLE TO NGL ENERGY PARTNERS LP $ (168,546 ) $ (63,362 )
 
NET LOSS FROM CONTINUING OPERATIONS ALLOCATED TO COMMON UNITHOLDERS $ (184,909 ) $ (68,099 )
NET LOSS FROM DISCONTINUED OPERATIONS ALLOCATED TO COMMON UNITHOLDERS $ (3,639 ) $ (5,256 )
NET LOSS ALLOCATED TO COMMON UNITHOLDERS $ (188,548 ) $ (73,355 )
BASIC LOSS PER COMMON UNIT
Loss From Continuing Operations $ (1.52 ) $ (0.56 )
Loss From Discontinued Operations, net of Tax (0.03 ) (0.05 )
Net Loss $ (1.55 ) $ (0.61 )
DILUTED LOSS PER COMMON UNIT
Loss From Continuing Operations $ (1.52 ) $ (0.56 )
Loss From Discontinued Operations, net of Tax (0.03 ) (0.05 )
Net Loss $ (1.55 ) $ (0.61 )
BASIC WEIGHTED AVERAGE COMMON UNITS OUTSTANDING 121,544,421   120,535,909  
DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING 121,544,421   120,535,909  
 
   

EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW RECONCILIATION

(Unaudited)

The following table reconciles NGL's net loss to NGL's EBITDA,
Adjusted EBITDA and Distributable Cash Flow:

 
Three Months Ended June 30,
2018     2017
(in thousands)
Net loss $ (169,289 ) $ (63,707 )
Less: Net loss (income) attributable to noncontrolling interests 345 (52 )
Less: Net loss attributable to redeemable noncontrolling interests 398   397  
Net loss attributable to NGL Energy Partners LP (168,546 ) (63,362 )
Interest expense 46,412 49,278
Income tax expense 651 459
Depreciation and amortization 61,575   68,063  
EBITDA (59,908 ) 54,438
Net unrealized losses (gains) on derivatives 18,953 (2,001 )
Inventory valuation adjustment (1) (24,602 ) (19,182 )
Lower of cost or market adjustments (413 ) 4,078
Loss (gain) on disposal or impairment of assets, net 101,343 (11,213 )
Loss on early extinguishment of liabilities, net 137 3,281
Equity-based compensation expense (2) 5,511 8,821
Acquisition expense (3) 1,252 (318 )
Revaluation of liabilities (4) 800
Gavilon legal matter settlement (5) 35,000
Other (6) 2,241   1,025  
Adjusted EBITDA 80,314 38,929
Less: Cash interest expense (7) 43,840 46,371
Less: Income tax expense 651 459
Less: Maintenance capital expenditures 12,390   6,527  
Distributable Cash Flow $ 23,433   $ (14,428 )

___________

(1)   Amount reflects the difference between the market value of the
inventory of NGL's Refined Products and Renewables segment at the
balance sheet date and its cost. See "Non-GAAP Financial Measures"
section above for a further discussion.
 
(2) Equity-based compensation expense in the table above may differ from
equity-based compensation expense reported in the footnotes to our
unaudited condensed consolidated financial statements included in
the Partnership's Quarterly Report on Form 10-Q for the quarter
ended June 30, 2018. Amounts reported in the table above include
expense accruals for bonuses expected to be paid in common units,
whereas the amounts reported in the footnotes to our unaudited
condensed consolidated financial statements only include expenses
associated with equity-based awards that have been formally granted.
 
(3) Amounts represent expenses we incurred related to legal and advisory
costs associated with acquisitions, partially offset by
reimbursement for certain legal costs incurred in prior periods.
 
(4) Amounts represent the non-cash valuation adjustment of contingent
consideration liabilities, offset by the cash payments, related to
royalty agreements acquired as part of acquisitions in our Water
Solutions segment.
 
(5) Represents the accrual for the estimated cost of the settlement of
the Gavilon legal matter (see the footnotes to our unaudited
condensed consolidated financial statements included in the
Partnership's Quarterly Report on Form 10-Q for the quarter ended
June 30, 2018). We have excluded this amount from Adjusted EBITDA as
it relates to transactions that occurred prior to our acquisition of
Gavilon LLC in December 2013.
 
(6) Amount for the three months ended June 30, 2018 represents non-cash
operating expenses related to our Grand Mesa Pipeline, certain
expenses related to discontinued operations, unrealized loss on
marketable securities and accretion expense for asset retirement
obligations. Amount for the three months ended June 30, 2017
represents non-cash operating expenses related to our Grand Mesa
Pipeline and accretion expense for asset retirement obligations.
 
(7) Amounts represent interest expense payable in cash for the period
presented, excluding changes in the accrued interest balance.
 
   

ADJUSTED EBITDA RECONCILIATION BY SEGMENT

 
Three Months Ended June 30, 2018
Crude Oil
Logistics
    Water
Solutions
    Liquids     Refined
Products
and
Renewables
    Corporate
and
Other
   

Discontinued
Operations

    Consolidated
(in thousands)
Operating (loss) income $ (99,738 ) $ 969 $ 2,623 $ 29,022 $ (17,430 ) $ $ (84,554 )
Depreciation and amortization 19,229 25,309 6,468 321 718 52,045
Amortization recorded to cost of sales 80 37 1,348 1,465
Net unrealized losses on derivatives 7,412 9,110 2,337 18,859
Inventory valuation adjustment (24,602 ) (24,602 )
Lower of cost or market adjustments (504 ) 91 (413 )
Loss (gain) on disposal or impairment of assets, net 101,894 2,475 (10 ) (3,026 ) 2 101,335
Equity-based compensation expense 5,511 5,511
Acquisition expense 160 1,136 1,296
Other income (expense), net 14 35 (17 ) (33,774 ) (33,742 )
Adjusted EBITDA attributable to unconsolidated entities (54 ) 476 (43 ) 379
Adjusted EBITDA attributable to noncontrolling interest (112 ) (322 ) (434 )
Revaluation of liabilities 800 800
Gavilon legal matter settlement 35,000 35,000
Other 1,550 100 17 150 1,817
Discontinued operations           5,552   5,552  
Adjusted EBITDA $ 30,441   $ 38,597   $ 10,841   $ 3,763   $ (8,880 ) $ 5,552   $ 80,314  
 
 
Three Months Ended June 30, 2017
Crude Oil
Logistics
Water
Solutions
Liquids Refined
Products
and
Renewables
Corporate
and
Other

Discontinued
Operations

Consolidated
(in thousands)
Operating income (loss) $ 4,357 $ (1,154 ) $ (8,772 ) $ 14,496 $ (17,726 ) $ $ (8,799 )
Depreciation and amortization 20,835 24,008 6,330 324 920 52,417
Amortization recorded to cost of sales 85 70 1,430 1,585
Net unrealized gains on derivatives (659 ) (1,369 ) (2,028 )
Inventory valuation adjustment (19,182 ) (19,182 )
Lower of cost or market adjustments 2,476 1,602 4,078
Gain on disposal or impairment of assets, net (3,559 ) (730 ) (7,528 ) (11,817 )
Equity-based compensation expense 8,821 8,821
Acquisition expense (318 ) (318 )
Other income, net 44 18 4 168 1,541 1,775
Adjusted EBITDA attributable to unconsolidated entities 3,822 154 891 11 4,878
Adjusted EBITDA attributable to noncontrolling interest (244 ) (244 )
Other 911 93 21 1,025
Discontinued operations           6,738   6,738  
Adjusted EBITDA $ 25,836   $ 22,145   $ (1,240 ) $ (7,799 ) $ (6,751 ) $ 6,738   $ 38,929  
 
   

OPERATIONAL DATA

(Unaudited)

 
Three Months Ended
June 30,
2018     2017
(in thousands, except per day amounts)
Crude Oil Logistics:
Crude oil sold (barrels) 11,225 10,020
Crude oil transported on owned pipelines (barrels) 9,987 6,766
Crude oil storage capacity - owned and leased (barrels) (1) 6,371 6,454
Crude oil inventory (barrels) (1) 1,164 1,778
 
Water Solutions:
Wastewater processed (barrels per day)
Eagle Ford Basin 279,184 220,579
Permian Basin 421,535 232,105
DJ Basin 136,115 112,437
Other Basins 83,038   58,979
Total 919,872   624,100
Solids processed (barrels per day) 5,899 4,168
Skim oil sold (barrels per day) 3,615 2,525
 
Liquids:
Propane sold (gallons) 233,786 224,733
Butane sold (gallons) 113,025 91,517
Other products sold (gallons) 116,985 90,611
Liquids storage capacity - owned and leased (gallons) (1) 438,968 453,971
Propane inventory (gallons) (1) 62,816 94,488
Butane inventory (gallons) (1) 54,577 76,047
Other products inventory (gallons) (1) 6,357 6,977
 
Refined Products and Renewables:
Gasoline sold (barrels) 40,738 28,516
Diesel sold (barrels) 11,777 13,798
Ethanol sold (barrels) 544 1,014
Biodiesel sold (barrels) 328 627
Refined Products and Renewables storage capacity - leased (barrels)
(1)
9,523 9,225
Gasoline inventory (barrels) (1) 3,323 2,748
Diesel inventory (barrels) (1) 965 1,973
Ethanol inventory (barrels) (1) 714 586
Biodiesel inventory (barrels) (1) 165 255

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(1)   Information is presented as of June 30, 2018 and June 30, 2017,
respectively.
 

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