NGL Energy Partners LP operates as a Delaware master limited partnership in midstream energy logistics and produced water management. The Partnership transports, stores, markets and provides logistics services for crude oil, natural gas liquids and other products, while its Water Solutions business transports, treats and disposes of produced water generated by oil and natural gas production.
Company news commonly covers Delaware Basin water infrastructure, including the Lea County Express Pipeline System, disposal wells, injection facilities and produced water handling capacity. Other recurring developments include results by Water Solutions and Crude Oil Logistics, activity on the Grand Mesa Pipeline and terminal assets, preferred-unit distributions, common-unit repurchases, debt refinancing and other capital-structure actions.
NGL Energy Partners LP (NYSE: NGL) reported on recent bankruptcy proceedings involving its customer, Extraction Oil & Gas, Inc. Extraction has sought to reject two Transportation Services Agreements (TSAs) with NGL's subsidiary, Grand Mesa Pipeline. The bankruptcy court granted Extraction's motion, prompting Grand Mesa to appeal the decision. Grand Mesa's position asserts that the Federal Energy Regulatory Commission (FERC) has exclusive jurisdiction over certain aspects of the agreements. Additionally, Grand Mesa has raised concerns regarding Extraction's rights offering and its implications for equity dilution among unsecured creditors.
NGL Energy Partners LP (NYSE: NGL) declared a quarterly distribution of $0.10 per unit for Q2 2020, payable on November 13, 2020. The annualized distribution stands at $0.40, supported by an expected coverage of over 5.0x. CEO Mike Krimbill noted that this adjustment aims to reduce debt and leverage. The company performed well amidst industry challenges, achieving an average of 1.6 million barrels per day in produced water volumes. NGL plans to release its Q2 earnings on November 9, 2020.
NGL Energy Partners LP (NYSE: NGL) announced the commencement of produced water receipt from XTO Energy’s Poker Lake Development in the Delaware Basin. This marks full commissioning of the Poker Lake Express Pipeline, with an initial capacity exceeding 350,000 barrels per day, dedicated to 70,000 acres in Eddy County, NM. The Partnership expects to expand its capacity to over 700,000 barrels per day as the development progresses. This milestone signifies a key advancement for NGL's Water Solutions business, reflecting strong collaboration between NGL and XTO Energy.
NGL Energy Partners LP (NYSE: NGL) has signed a new water supply and produced water transportation agreement with a leading producer in the Delaware Basin. This agreement includes minimum volume commitments effective January 1, 2021, covering acreage in Lea County, New Mexico. Doug White, EVP of Water Solutions, expressed confidence in the Partnership's ability to meet critical water supply and disposal needs efficiently. NGL operates a vast integrated network in several prolific U.S. oil and gas regions.