NGL Energy Partners LP Closes \$950 Million Term Loan and Amends Credit Facility

Significant Financial Restructuring May Impact Shareholder Value

Tulsa, Okla. – NGL Energy Partners LP (NYSE: NGL) has announced a major financial transaction that could potentially affect its share price and overall capital structure. The company, through its subsidiaries NGL Energy Operating LLC and NGL Energy Finance Corp., has successfully closed a new seven-year \$950 million senior secured term loan facility.

Key Points for Investors

• Term Loan Increased: The facility amount reflects an increase of \$250 million in secured debt financing, raising the total from \$687.8 million to \$950 million.
• Use of Proceeds: Net proceeds from the term loan are earmarked for three main purposes:
  • Repaying all borrowings under NGL’s existing term loan credit agreement.
  • Redeeming, repurchasing, or retiring approximately 195,000 Class D Preferred Units.
  • Any remaining proceeds will be used for general corporate purposes.
• Class D Preferred Units: After these redemptions, about 316,000 Class D Units will remain outstanding. This is a significant reduction and could impact distributions and the capital structure.
• Amendment to Asset-Based Revolving Credit Facility: NGL also amended its senior secured asset-based revolving credit facility, reducing aggregate commitments from \$475 million to \$425 million and making additional changes to the terms.

Potentially Price-Sensitive Information

• Simpler and More Flexible Capital Structure: CEO Mike Krimbill stated that the incremental \$250 million in proceeds, combined with additional funds from the asset-based lending facility (ABL), will enable NGL to repurchase a substantial number of Class D Units. This restructuring is expected to simplify the company’s capital structure and increase flexibility, potentially improving financial performance and investor confidence.
• Impact on Preferred Unit Holders: The redemption and repurchase of Class D Units could affect the rights and distributions to existing holders. Investors should note that this press release does not constitute an offer to repurchase or a redemption notice for any of the Class D Units.
• Forward-Looking Statements: The company has warned that actual results may vary and are subject to risks and uncertainties, including those detailed in its SEC filings under “Risk Factors.” Investors are advised to review these filings carefully.

Company Overview

NGL Energy Partners LP is a Delaware limited partnership operating as a diversified midstream energy company. It provides transportation, storage, marketing, and logistics services for crude oil, natural gas liquids, and other products. The company also transports, treats, and disposes of produced water generated during oil and gas production.

For more information, visit www.nglenergypartners.com.

Contact: David Sullivan, Vice President – Finance, at 918-495-4631 or [email protected]

Disclaimer: This article contains forward-looking statements and information that may impact investment decisions. Investors should exercise caution and review all company filings, especially those related to risk factors. No guarantee is made regarding the accuracy of forward-looking statements, which are subject to change. This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell securities.

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