Citi MLP Conference
August 2014
Forward Looking Statements
This presentation includes “forward looking statements” within the meaning of federal securities laws. All statements, other
than statements of historical fact, included in this presentation are forward looking statements, including statements
regarding the Partnership’s future results of operations or ability to generate income or cash flow, make acquisitions, or
make distributions to unitholders. Words such as “anticipate,” “project,” “expect,” “plan,” “goal,” “forecast,” “intend,” “could,”
“believe,” “may” and similar expressions and statements are intended to identify forward-looking statements. Although
management believes that the expectations on which such forward-looking statements are based are reasonable, neither
the Partnership nor its general partner can give assurances that such expectations will prove to be correct. Forward
looking statements rely on assumptions concerning future events and are subject to a number of uncertainties, factors and
risks, many of which are outside of management’s ability to control or predict. If one or more of these risks or uncertainties
materialize, or if underlying assumptions prove incorrect, the Partnership’s actual results may vary materially from those
anticipated, estimated, projected or expected.
Additional information concerning these and other factors that could impact the Partnership can be found in Part I, Item 1A,
“Risk Factors” of the Partnership’s Annual Report on Form 10-K for the year ended March 31, 2014 and in the other reports
it files from time to time with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on any forward-looking statements contained in this presentation, which
reflect management’s opinions only as of the date hereof. Except as required by law, the Partnership undertakes no
obligation to revise or publicly update any forward-looking statement.
2
Senior Management Representatives
H. Michael Krimbill
Chief Executive Officer – NGL
Atanas H. Atanasov
Chief Financial Officer
James J. Burke
President
3
Section II
Overview of NGL Energy Partners
4
Overview of NGL
Business Description




Segment Contribution
NGL is a diversified midstream MLP that provides multiple services to producers
and end-users

Transportation, storage and marketing of crude oil, NGLs and Refined
Products / Renewables

Water Solutions
Refined
Products/
Renewables
12%
Retail
Propane
15%
Liquids
13%
Vertical integration allows NGL to capture margins across the entire value chain

From crude oil wellhead to refinery

From wellhead to disposal, recycle or discharge water facility

From fractionator/refinery to propane, butane and commercial end-users

From refinery to pipeline and terminals to wholesalers / retailers
Crude
Logistics
35%
Water
Solutions
25%
Geographic diversification

Most prolific producing regions/shale plays in the U.S.

Coast-to-coast Rail, Terminal and Retail operations

Mid Continent and Gulf Coast crude oil storage and barge assets

Mid Continent pipeline
Adjusted EBITDA Growth Over Time
$425
Focused on generating stable and repeatable cash flows
$271
$184
NGL
$24
Water
Solutions
Crude
Logistics
Liquids
Retail
Propane
IPO
(May 2011)
2013
(3/31/13)
2014
(3/31/14)
FY 2015E
5
NGL Energy Partners Business Strategy

Grow at attractive multiples through:

Organic projects

Acquisitions/Mergers

Emphasis on repeatable fee-based cash flows

Conservative capital structure with low leverage consistent with investment grade rating


Leverage at 2.75x – 3.25x
Strong common unit coverage ratio
–
Greater than 1.5x

Target asset ownership/infrastructure to capture opportunities

Growth centered on three segments going forward (i) Crude Logistics (ii) Water Solutions and (iii)
Refined Products / Renewables

Steady and predictable distribution growth to maximize partnership’s access to equity
6
NGL
Assumptions
KeyOperational
Investment Highlights
 1,671% EBITDA growth from EBITDA of $24 million at IPO to $425 million Fiscal 2015
Successful Track
 74% distribution per unit increase since IPO
Record of Growth
 Growth has been combination of organic and acquisitions (more than 30 completed since IPO) for aggregate value
over $3.2 billion
Diversified and
Attractive Asset Base
 Multiple business segments reduce cash flow volatility and provides significant opportunities for growth in multiple
regions and business segments
 Presence in many of the most prolific, highest rate of return crude oil producing regions in North America
 Line space on Colonial and Plantation pipelines, Glass Mountain pipeline, Cushing OK storage
Vertical Integration
 Vertical integration allows for capture of margin across the value chain from wellhead to end-user
 Emphasis on asset ownership drives ability to capitalize on multiple revenue/bolt-on opportunities
 Focus is on repeatable fee-based cash flows
Stable Cash Flows
 Combination of fee-based, take-or-pay, acreage dedication, margin-based and cost-plus revenue contracts
 Geographic diversity
 Conservative capital structure with low leverage (targeted leverage of 2.75X – 3.25X)
Strong Credit Profile and
Liquidity
 Revolver sized at $2.2 billion
 Excess cash earned is reinvested in growth projects
 Strong common unit coverage ratio
Experienced & Incentivized
Management Team
 Extensive industry and MLP experience with proven record of acquiring, integrating, operating and growing
successful businesses (completed and integrated over 200 acquisitions in the past 20 years)
 Senior management holds significant limited partner interests and GP stake, which strengthens alignment of
incentives with lenders and public unitholders
7
NGL Has a Proven Track Record of Successful Growth
NGL has delivered a total return of 117% since IPO
 Since NGL's IPO in May 2011, NGL has consumated and integrated more than 30 acquisitions totaling
over $3.2 billion
 Distribution growth of 18% in calendar 2014 and 10% plus thereafter
Key Growth Metrics and Performance
Market Cap ($mm)
Distribution Per Unit ($)
Excludes
TransMontaigne
$3,796
$0.5888
$0.5513
$0.5313
$0.5113
$0.4938
$0.4775
$0.4625
$0.4500
$1,442
$0.4125
$0.3625
$0.3500
$0.3375
$0.3375
$0.3375
MQD at
IPO (1)
1Q12
2Q12
(1)
(2)
3Q12
4Q12
1Q13
Pro rated for a full quarter
$42.95 unit price as of 7/31/14
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
3/31/2013
Current
(2)
8
Diversified Across Multiple Businesses
and Producing Basins
NGL’s operations are geographically and operationally diversified



Significant presence in the most economic oil and natural gas shale plays in the country
Coast-to-coast terminals and Retail Propane locations
Bakken
Shale
Marcellus
Shale
Green River
Basin
Pinedale Anticline
DJ
Basin
Jonah Field
NGL
Assets and marketing presence
Refinery terminal
NGL leased storage
NGL proprietary terminal
Niobrara Shale
Wattenberg Field
Mississippi Lime
Granite Wash
Natural gas liquids segment
Railcar NGL terminal
Permian
Basin
Common carrier pipeline
Crude operational area
Crude oil segment
Crude barge terminal
NGL proprietary crude storage
Eagle Ford
NGL proprietary crude pipeline
Crude Barges
Water Services
Retail Propane
9
TransMontaigne
Inc. - Area of Operations
Section
II
10
Integrated Midstream Solutions
Service a stable base of customers with integrated midstream services across the value chain
Crude Logistics
Wellhead
Pipeline
Storage
Terminal
Rail
Barge
LACT Units
Truck
Pipeline
Refiner
Water Solutions
Wellhead
Truck
Pipeline
Processing Plant
SWD
Recycle
Discharge
NGL Liquids
Fractionator
Storage Hub
Refinery
Terminal
Rail
Storage
Pipeline
Retail Propane
Refinery
Diluent
Petrochemical
Refined Products / Renewables
Refiner
Pipeline
Storage
Terminal
Wholesale
Marketing
11
Significant Operational Diversity
NGL's Core Business Lines
Description
Region
Cash Flow
Characteristics
Strategic Focus
Refined Products/
Renewables
Crude Logistics
Water Solutions
NGL Liquids
Retail
 Purchase and transport
crude oil from wellhead
to refinery
 Own and operate
storage, pipelines,
terminals, barge, rail and
truck logistics assets
 Treatment of oil and gas
wastewater
 Water disposal, recycling
and discharge
 Innovative (patented
technology)
 Transport, handle, store
NGLs
 Own assets across value
chain
 Marketing / supply
business allows NGL to
capture opportunities
with approximately 1,000
customers in 47 states
 Distribute propane /
distillates to
residential,
industrial, and
commercial
customers
 Own assets
 90% tank ownership
 Purchase and
transport refined
products from
refinery to rack
 Own and operate
pipelines and
terminals
 Marketing business
with approx. 1,000
customers in 48
states









 Coast to Coast
 Midwest
 New England
 Pacific Northwest
 Coast to Coast
Mid-continent
Eagle Ford / Permian
Rockies
Gulf Coast
Canada
Anticline (WY)
DJ Basin (CO)
Eagle Ford (TX)
Permian (TX)
 Fee-based pipeline,
storage, terminals and
assets
 Margin-based logistics
 Back-to-back contracts
 Fee-based
 Take-or-pay / acreage
dedication contracts
 Strong customer base
 Fee-based / Cost Plus
 Back-to-back contracts
 Margin-based
 Utility residential
model
 Weather-sensitive
 Minimum throughput
contracts
 Fixed margin
contract business
 Back-to-back
contracts
 Expand operations in
existing areas
 Grow through
acquisitions
 Organic projects
 Grow organically
 Pursue strategic
acquisitions
 Integrate operations and
capture full value chain
opportunities
 Grow / expand terminals
segment
 Focus on West
Coast expansion
 Blend-ins in current
footprint
 Integrate operations
and capture full
value chain
opportunities
12
Section II
NGL Segments
13
Crude Logistics
Area of Operation
Segment Operations


Purchases and transports crude oil
for resale to a pipeline injection
point, storage terminal, barge
loading facility, rail facility, refinery or
trade hub
Strategically deployed railcar fleet,
tows, barges and trucks provide
access to multiple customers and
markets, allowing NGL to bring the
right crude oil to the right market
Bakken
Shale
DJ
Basin
Niobrara Shale
NGL
Crude Oil Logistics
Operational area
Crude operational area


Maximizes value of crude oil
gathered through proprietary linear
programming model
Crude oil segment
Crude oil
segment
Crude barge terminal
Crude barge terminal
Crude Barges
Wattenberg Field
Mississippi Lime
Granite Wash
Permian
Basin
NGL proprietary crude storage
NGL proprietary crude pipeline
Reduces exposure to price
fluctuations by using back-to-back
contractual agreements

Purchase from >7,500 active lease
locations representing >750
producers

Current volumes of ~230,000
bbls/day
Crude Barges
Eagle Ford
14
Crude Logistics
Asset Overview
 7.7 MMbbls of storage in Cushing (3.6MMbbls leased)
 5 Gulf Coast terminals with aggregate capacity of ~850 Mbbls
Terminals
 Port of Catoosa, Oklahoma - storage services; truck and rail trans-loading to barges with
access to Gulf Coast; 140Mbbls storage capacity
 7 truck terminals and 50+ LACT units
 North Dakota rail terminal
 Additional terminals pending or under development
 ~1,150 GP railcars leased or owned
Rail
 Railcars provide optionality to markets via company and third-party facilities
 ~30K bbls/day moved through manifest shipping and unit-train facilities
 Own 8 tows, 19 barges, 20-25Mbbls per barge capacity
Barges
 Lease additional 5 tows and 12 barges
 Fee-based, day rate business
 50% interest in Glass Mountain Pipeline; ~147MMbbls/d capacity
Pipelines
 Ship on 18 common carrier pipelines
 Utilize historical shipper space on 11 prorated pipelines
 >300 owned trucks and >300 trailers
 Additional ~100 trucks on committed lease
Trucks
 Moving Company first-purchased barrels and fee-based hauling for third parties
 ~245Mbbls/day hauled/transported (~225Mbbls hauled for Company, ~20Mbbls for third
parties)
15
Water Treatment and Processing
Industry Overview
 Oil and natural gas producers preserve cash for drilling by outsourcing the disposal and treatment of
oilfield produced and flowback water (“waste water”)
 Water quality is measured by amount of TDS (Total Dissolved Solids) which can include salts, boron,
iron, calcium, strontium, magnesium, and barium (higher TDS equals harder to treat or dirtier water)
 The water quality and the geology vary by region / area and dictate the feasibility, cost of disposal and
treatment systems
 Distance to disposal and treatment facilities, as well as the ability to handle large volumes of water, are
key concerns for E&P companies
 Produced water from the well that occurs over the life of the well, and water recovered from hydraulic
fracturing activities (flowback water) requires different levels of water treatment
 Waste water disposal and treatment provides fee-based revenue, with additional revenue generated
from hydro-carbon recovery and recycled water sales
16
Water Treatment and Processing
Operational Model
 Treatment and Disposal
– Company-owned disposal facilities provide producers affordable well-disposal of wastewater generated
from oil and natural gas production and drilling activities
– Water treatment process separates solids and hydrocarbons from water prior to disposal
– 24 x 7 operations, truck bay loading/unloading
– Certain facilities are pipeline connected, providing stronger customer relationship with the producers
– Proprietary well maintenance programs enhance injection-rates and service lives of the wells
 Recycle Operations
– Provides higher quality of water treatment services where the clean water can be re-used by producers
for fracking, well drilling, and completion projects
– Offers producers an alternative to fresh water that minimizes the impact on aquifers, particularly in arid
regions of the U.S.
– Recycled ~33 million barrels (1.4 billion gallons) of water since 2008
 Discharge Water
– Multi-patented 14-step water treatment process
– Cleans water to a better than drinking water quality
– Returned over five million barrels (210 million gallons) back to New Fork River, Wyoming, a tributary of
the Colorado River
– Continued R&D investments to employ latest technologies in various basins
17
Water Solutions
Overview
Segment Operations

Provides services for the treatment,
processing, and disposal of wastewater
generated from oil and natural gas
production

Generates fee-based revenue from the
disposal of wastewater, the sale of
recycled wastewater, and recovered
hydrocarbons

Multiple treatment, disposal, and recycling
facilities located across the United States

Long-term, deliver-or-pay contracts and
acreage dedication contracts reduce cash
flow volatility

Provides high technology solution where
necessary. Has highly advanced
technology and commits $2.0-$3.0 million
annually on R&D

Multi-patented 14-step water treatment
process that cleans water to a better than
drinking water quality
Area of Operation
18
Water Solutions
Regional Operations
Anticline
DJ Basin
Eagle Ford
Permian
Overview
 Treatment of oil and gas
waste-water for recycling,
clean water discharge, or
disposal using a multipatented process technology
 Leading provider of oil and
gas waste-water disposal
services
 Recycling plants to sell water
back to producers
 Expansive footprint across
the Eagle Ford
 Treatment of oil and gas
waste-water for disposal
 Growing presence in one of
the most active oil plays in the
world
 Treatment of oil and gas
waste-water for disposal
Market Profile / Asset
Highlights
 ~1,675 wells in area
 1 treatment & recycling plant
 60 Mbbl/d capacity with
recycling
 ~23,000 wells in area
 7 water disposal facilities with
11deep injection wells
 120 Mbbl/d capacity
 2 recycling plants with 20
Mbbl/d capacity
 274 Mbbl/d disposal capacity
 16 SWD wells across the play
 Some of the best production
economics of all oil plays
 Significant drilling activity as
play continues to ramp up
 147 Mbbl/d disposal capacity
 4 SWD wells across the play
 Some of the best production
economics of all oil plays
 Significant drilling activity as
play continues to ramp up
 Fixed fee per bbl
 Recycled water sales
 Hydrocarbon recovery
 Fixed fee per bbl
 Recycled water sales
 Hydrocarbon recovery
 Fixed fee per bbl
 Hydrocarbon recovery
 Fixed fee per bbl
 Hydrocarbon recovery
 90% “Take or Pay”
 Multi-year contracts
 Acreage dedications
 Multi-year contracts
 Combination of multi-year
contracts, company owned
water hauling fleet and shortterm arrangements
 Short-term arrangements
Revenue Profile
Contractual Profile
19
Liquids
Overview
Area of Operation
PHILADELPHIA
20
Liquids
Terminals and Wholesale Supply & Marketing Segment

22 terminals serving over 300 customers
–
17 terminals with rail loading capability
–
13 multi-product terminals
–
13 pipe-connected terminals

19 million gallons of above ground storage

> 3.8 million barrels of leased underground storage

Automated truck loading and unloading facilities
operating 24 hours a day

Over 900 wholesale customers in 45 states

Approximately 85,000 Bbls/d of propane sold

–
~50% of which goes through proprietary terminals
–
Includes 200 million of pre-sold propane gallons at a
fixed price with a locked-in margin
Rack sales through common carrier pipeline terminals
Railcar Segment

Transports and markets NGLs to and from refiners,
gas processors, propane wholesalers, proprietary
terminals, petrochemical plants, diluent markets and
other merchant users of NGLs

Service offered in each of the lower 48 states and
Canada

Utilizes terminal storage to take advantage of
seasonal demand

Purchase-and-sale transactions are entered primarily
on a back-to-back basis

Average volumes of ~50,000 Bbls/d from more than
100 customers

Majority of liquids sold are butane and propane

~ 3,550 leased high pressure railcars; ~700 GP
railcars
21
Retail Propane
Overview
Area of Operation
Segment Operations

Sell propane and petroleum distillates to
end-users consisting of residential,
agricultural, commercial and industrial
customers

Geographic diversity mitigates weather
risk

Less volatility from warm weather as
margins increase when demand falls and
vice versa

Liquids Logistics segment provides 75%
of Retail Propane segment demand

Cost plus margins allow immediate passthrough of wholesale price increases

The Retail Propane business is seasonal
Retail Propane
Operational area
 ~70% of retail propane volume is sold
during the peak heating season from
October through March

Focus on residential customers, high tank
ownership and customer retention
22
Retail Propane
What Sets Us Apart
Geographic Focus
Customer Base
Retention
Leverage Acquisition
Brand Names
Empower Local
Management
 Operational focus on regions with the highest number of degree days – North East, Upper Midwest
and Pacific NW
 In warmer weather, gross margins temporarily expand to recoup a portion of revenues lost to
volume declines
 Retain and grow customer base by pricing product competitive with other regional retailers

Acquisition model assumes independent / “mom-and-pop” margins continue
 Retain local brand - no change to uniforms, invoices, signs or trucks
 Ownership change is seamless to customers while simultaneously saving on capital expenditures
and expenses
 Decisions regarding pricing, advertising, vehicles and other expenses are made at the regional and
district levels
 Fosters swift decision making by leadership attuned to the local or regional market
 Daily price changes at supply points are communicated to local management
 Efforts are made to retain employees of acquired businesses
Employee Retention
Quickly Implement
Operational
Improvements
 Aides in preservation of customer relationships, safeguarding knowledge of local market dynamics,
and prevents the creation of ex-employees investing in competitive propane assets
▪ History of successful acquisitions with demonstrated track record of improving profitability through
operational efficiencies, not margin enhancement

Improved vehicle routing, consolidated back office functions, less expensive insurance, etc.
23
Section II
Refined Products / Renewables
24
Refined Products
Refined Product - Rack

Market refined products at the rack to wholesale
Refined Product - Bulk

resellers and end users in the spot market
Market refined products at the rack to contracted
customers

188 terminals with sales in 37 states

7.35 million gallons of leased above ground storage

Automated truck loading and unloading facilities

Approx. 890 million gallons of above ground storage
operating 24 hours a day

Automated truck loading and unloading facilities

47 terminals with sales in 11 states
–
3 water borne terminals in FL

Approximately 500 customers

Approximately 75,000 Bbls/d of distillates and

Approximately 500 customers
gasoline sales

Approximately 116,000 Bbls/d of distillates and

operating 24 hours a day
gasoline sales
Rack sales through common carrier pipeline terminals

80% of volumes are contracted
25
Renewables
Ethanol

Sell ethanol on a back-to-back basis and transports
purchased volumes to leased and customer terminals

Average volumes of 32,000 bbls/d with 275 customers
in 48 states; 25% of that volume is used in proprietary
blending
BioDiesel
 NGL generates profits thru a mix of fee based income
with our TransMontaigne assets and supply chain
management with our legacy Gavilon business
 Legacy Gavilon Biodiesel Assets:
 Caljet Terminal in Phoenix, AZ

Fee-based marketing and logistics service
–
22 rail spots

Marketing agreements with two largest customers for
combined 142 MM/gal year; 25% of volumes is
contracted > 2 years
–
Approx. 42,000 bbl tank capacity
–
Exclusive marketing agreement at the
terminal

Storage locations in Chicago, Houston, Mason City, IA
–
Blends Biodiesel

Utilize a fleet of 350 GP railcars



Storage

–
2 tanks with 30,000 bbl capacity each
–
Break Bulk shipments into truck
TransMontaigne Biodiesel Assets:

Marketing
Agreements
Terminal in Deerfield, TX
Griffin, Ga

15,000 bbl tank capacity

Injects Biodiesel at 5% blend ratios
Port Everglades, Fl

50,000 bbl tank capacity

Blends Biodiesel with Clear ULSD at the
truck rack into 2%-20% biodiesel blends
Utilizes 200 GP railcars
26
TransMontaigne Inc. Transaction Overview

Purchased TMI from Morgan Stanley for $200 million plus inventory of $346 million

NGL received:

–
3,171,161 TLP Common Units
–
100% of TLP General Partner
–
130,000 bbl/d of combined shipper history on Colonial and Plantation pipelines
–
116,000 bbl/d of marketing agreements, 80% of volumes contracted
–
Projected TransMontaigne EBITDA of $35 million year 1 , $55 million year 2 , $70 million year 3
Opportunities
–
Butane Blending
–
Increased throughput volumes through terminals
–
Brownsville Terminal
27
TransMontaigne
Inc. - Area of Operations
Section
II
28
Simplified TransMontaigne Ownership Structure
NGL Energy Partners
L.P.
Public Unitholders
100% Interest
TransMontaigne Inc.
80%
Interest
(Limited
Partner)
100% Interest
TransMontaigne
Product Services Inc.
17%
Interest
(Limited
Partner)
2% Interest
(General
Partner)
100% Interest
TransMontaigne
Partners L.P.
TransMontaigne GP
L.L.C.
3% Interest
(Limited Partner)
100% Interest
Operating
Subsidiaries
29
Conclusion and Key Takeaways


Compelling investment opportunity with attractive combination of yield and growth
–
Distribution growth of 18% for calendar 2014 and 10% plus thereafter
–
74% distribution per unit increase since IPO
–
NGL total return 117% since IPO
Multiple growth platforms
–
Brings strategic acquisitions that are accretive
–
Completed over $3.2 billion of acquisitions in last 3 years
–
Substantial organic growth projects, currently $500 million

Diverse geographic and operational footprint reduces risk

Strong credit profile and sufficient liquidity to run business and execute growth objectives

High common unit coverage provides cash to finance growth and maintain distribution
growth profile

Experienced, management team with substantial equity ownership
30