NGL Energy Partners LP Announces Second Quarter Fiscal 2016 Results

NGL Energy Partners LP (NYSE:NGL) today reported Adjusted EBITDA of
$67.6 million for the three months ended September 30, 2015 (exclusive
of $0.6 million of advisory and legal costs related to acquisitions)
compared to Adjusted EBITDA of $70.4 million for the three months ended
September 30, 2014 (exclusive of $3.2 million of advisory and legal
costs related to acquisitions and $5.0 million of severance/compensation
costs related to the Gavilon and TransMontaigne acquisitions). NGL
reported a net loss of $24.2 million for the three months ended
September 30, 2015, compared to a net loss of $15.9 million for the
three months ended September 30, 2014.

For the six months ended September 30, 2015, NGL reported Adjusted
EBITDA of $156.6 million (exclusive of $0.6 million of advisory and
legal costs related to acquisitions), compared to Adjusted EBITDA of
$113.5 million during the six months ended September 30, 2014 (exclusive
of $4.3 million of advisory and legal costs related to acquisitions and
$7.7 million of severance/retention costs related to the Gavilon and
TransMontaigne acquisitions). NGL reported a net loss of $62.7 million
for the six months ended September 30, 2015, compared to a net loss of
$55.8 million for the six months ended September 30, 2014.

“NGL delivered another solid quarter in an overall challenged energy
environment growing our EBITDA year to date by approximately 40% over
the previous year. We are focused on completing our previously announced
organic projects, originating additional such projects, and increasing
the partnership’s fee-based cash flows to two-thirds by fiscal 2018,”
said Mike Krimbill, CEO of NGL Energy Partners.

A conference call to discuss NGL's results of operations is scheduled
for 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on Tuesday,
November 10, 2015. Analysts, investors, and other interested parties may
access the conference call by dialing (855) 436-2710 and providing
access code 70634807. An archived audio replay of the conference call
will be available for 7 days beginning at 7:00 p.m. Eastern Time
(6:00 p.m. Central Time) on November 10, 2015 and can be accessed by
dialing (855) 859-2056 and providing access code 70634807. A
presentation of the results will be posted before the conference call at
NGL’s Investor Relations website at www.nglenergypartners.com/investor-relations/presentations/.

NGL defines EBITDA as net income (loss) attributable to parent equity,
plus interest expense, income tax provision (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, and equity-based compensation expense. NGL also includes in
Adjusted EBITDA certain inventory valuation adjustments related to its
refined products and renewables segment, as described below. EBITDA and
Adjusted EBITDA should not be considered alternatives to net income,
income before income taxes, cash flows from operating activities, or any
other measure of financial performance calculated in accordance with
accounting principles generally accepted in the United States (“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 its ability
to make quarterly distributions to its 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 its 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 its refined products and renewables segment, for purposes
of its 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 records a realized gain or loss.
NGL does not draw such a distinction between realized and unrealized
gains and losses on derivatives of its 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 table below reflects the
excess of the market value of the inventory of the refined products and
renewables segment at the balance sheet date over its cost. NGL adds
this to Adjusted EBITDA because the gains and losses associated with
derivative contracts of this segment, which are intended primarily to
hedge inventory holding risk, also impact Adjusted EBITDA.

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 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.

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 the Partnership's website at www.nglenergypartners.com.

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