NGL - Earnings call transcript Q4 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to the Q4 2018 NGL Energy Partners LP Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to introduce Chief Financial Officer, Mr. ahead go Please Karlovich, sir. Trey

Robert Karlovich

thank Thank for us. everybody you. And joining you

may, are intended call reminder, statements project, plan, could, a this includes as statements. expect, expressions believe, statements intend, forecast, As to identify conference goal, anticipate, such forward-looking and and similar Words and forward-looking information.

are from publicly opportunities or the the the results market to natural oil, for and While gas expectations and and risk financial liquids could forward-looking natural EBITDA, gas and and that identify are revise Please costs forward-looking result correct. information, annual operate also to other see partnership's acquired. Energy differ expectations This undertakes press crude future NGL a quarterly natural our on on of forward-looking Form and other will to measures, assets successfully to statements. releases, XX-K, non-GAAP well cash natural under which believes Partners be adjusted or reasonable reconciliations of earnings and cause assurance and the of successfully evaluating our public measures in and useful impact production of XX-Q tab and strategic statements assumptions, use conference expectations our XX-K in Partners website on partnerships reports accretive quarterly factors the and integrate flow, weather otherwise. products certain includes information Form conditions NGL gas any to gas call believes of call are oil, non-GAAP at no management demand such any its investor or results. filings directly on presentations obligation EBITDA for are anticipated there number in our will events Other www.nglenergypartners.com prices Form on that factors of distributable as A call actual Relations namely Energy these and that as crude projections, based effect results new the non-GAAP businesses and on can growth Form Investor of built or statements no described included oil, that liquids, refined releases. These the to and more are the financial reports and to Krimbill. annual between XX-Q CEO report and liquids; differences the as ability acquisitions measures natural I measures. at and financial in this now to Mike on factors be natural materially this At that demand level GAAP over gas, turn gas; time, discussed comparable conference for consummate most prove include factors could results update

Michael Krimbill

thank you evening Good Thanks joining and Trey. us. for

with to We have including today you NGL. and the several topics important strategic of direction discuss future

Propane profitable end at investment this different, XX.X is is the M&A after opportunity. maintenance EBITDA of times addressing high of little there XX course an X retailers capital, good peers the at and an expect clearly Thus cash requirements a Retail flows average a capital Maintenance us. actual is Retail times EBITDA has XX% growth in would week the for exist. which as X of growth. Its the is range. for mature Propane we transaction. have transaction don’t range. but that XX.X multiple to historically over cash foundation exceed but attractive of time in Propane Of internal start to but The sale business flow very I EBITDA, steady with barely XXXX like We times anything X valuation, quantity multiple traded achieved propane but are large the This form to have main limited is MLP. two in an a times been more EBITDA,

of is was resources. water oil to Partnership portion and water As rapidly share being Delaware premium X producers pipeline price adequate require required developing growth capital basin the of you this infrastructure of and to makes asset Thus an crude The opportunities significant partner the This high crude. at water a will in billions has Permian asset with attractive price. and ratios to it the attractive disposal develop. mover barrels in market at has an early space no presents of rates to of growth capital dollars The it at with capture of sense to is NGL generating to provided investment expertise know, and X to divest invest large a return. a slow and

expect that proceeds we the the be reinvesting EBITDA giving replaced of will Retail of are up XX% over couple We Propane by the years. next sale

Water. Second, and Crude let's discuss our for growth expectations

First, expect growth day three additional per asset in currently add fiscal of over the years Water Crude on assets approximately barrels EBITDA XXX the expect are increase which in in to In from DJ, to the pipeline. barrels have the this basins will volumes by SWDs be XXX,XXX capacity to with we to builds currently respect the operate. our over next Logistics, reduction shipped disposing end add rate. with Grand Solutions XXX,XXX we Mesa per new XX% in day Any XXXX. anticipate growth current We we business takeaway annual the we from and

Delaware least basis basin at as is We capital a XXXX. to expected water dollars on our day with produce the million this barrels of by XX are focused

day New XX-mile, border Texas-Delaware SWDs XXX,XXX of are our most Pecos, per building with Mexico pipeline connected North into it. Texas water from the to We in the of process a barrels

XX,XXX us drilled $X to Devonian fully in SWDs recently are deep they are and XX,XXX that pipe New We These Mexico. two respectively million have committed million cost with feet water. and $X

valuation present SWDs in connections. pipeline pipeline drilling term which characteristics percentage drill lowest contracts the the multiple of basins lost all connected. year Delaware laid sector should expect This best of long over water rigs time. will increase commitments, flow it The converting back processing less this in the be to as quickly is economics the fractionation gas risky We and with total when into which space is provides XX has which than be down. are can also Water other for

growth expect next We annual oil at for three years count. XX% the rig current and crude prices

Now direction the of strategic let's talk about NGL.

commodity Crude lines and of two high these First, moving repeatable five Both on from commitments, we're segments Logistics. growth Solutions the with of have to Oil although more away emphasis long less complex engines; a return high business MLP of and rate growth Water term flows, cash prices. to correlated

also self funded respect [ph] only coverage. is with to with predominantly model projects growth to possible internal are Second, moving we which commuted higher

to XXX range Over annually. we next few consistently years the excess be in DCF to anticipate XXX the

we Third, leverage our finally, acquisition reducing limiting revolver. largely significantly the are on our our And times sheet strengthening to X.X we and and balance borrowings on outstanding weather are we will flows. impact seasonality no by have cash

undrawn see ability So term to Since NGL? do and expect partnership Oil capital. business we NGL what by advisors, sector Crude has our ride liquidity the broader investment Solutions the the UBS grow working listened four, Two, need attractive not over several energy to bright is moving years. at substantially not Retail create difficult are banks, this We for that the near increase Trey. in our and turned with to RBC, of sold. EBITDA over their annually of We MLP we the over would a and expected again cost with enhance I navigated to last But Logistics one future four expect reduction of coverage have commuted [ph] the environment. years. leverage we X.X been once a confidence distribution course to energy investors markets. for next focused to enhanced investor, Water very an stay the downturn, a James to we're have future revolver, the and in commuted model, and Three, into that see to Darren X.X DCF this bondholders, reduced at that anticipate become in value and [ph] for we Back the replace would Raymond our the And a the and our and Propane the Shneur our the believe excess value market access we bankers in you, And on ability to the TJ at modification we XX% resulting couple three thank to growth opportunities EBITDA strategy with to the managed next a growth like is unitholders. our have we corner years. having ahead. and in ultimately smooth our

Robert Karlovich

near [indiscernible] reduce as cost the opportunities to Propane We additional well at fund especially plan obviously to maturities discussed. making the as few under growth to we facility transaction Mike proceeds initially do items related A liquidity business. and Mike. term from higher Thanks look our our our sure sale credit to that initially. We maintain of this note debt

markets. reliance and the balance capital units want limitations We but on and fund here also preferred the we debt evaluate issue without simple, around leverage to be internal opportunistic, opportunities capital maturities, debt free the or or term us any to debt transaction and the need capital manage markets liquidity capital This near capital of allows growth the goal other sheet self any is equity ability equity. lower to to

of closing we sale be significant prices Liquids a business and continue While Retail in making of smaller mentioned businesses earnings to the a portfolio Mike The up now those will Propane, immediately Products seasonality growing of and offset the water of it. to our commodity Refined focused will our after and business are we a an certain be amount continue to significantly. more as with crude may company, part have

nearly times We lower full expect of last sale reduction his Propane leverage leverage a our September. our term around March to XX, turns be ratio the X the almost and peak X.X which than closing from upon

X.XX Sawtooth West million below and remaining approximately at Retail the unsecured be our JV well including XX regards with the today. significantly target with of deleveraging, business credit million to notes debt based reduction proceeds the for and to our on implied just being of We released will at guidance XXXX quarter or and to fiscal we lower par level from repurchase continue that fourth lower our the our $XXX totaling reduced applied With facility. DCC proceeds to or during portfolio leverage debt sale as of

Our our focused sits X.X approximately water X September times. debt reduce which and fourth the able compliance million by quarter being of were the also growth is still while businesses. quarter which able patient reduced was primarily fund for to turns our on decline this We and of CapEx leverage $XX has been crude at currently to

Retail our our Propane businesses. by Grand were Mesa quarter results highlighted volumes a strong winter strong fiscal continued on results fourth Our in for and water normal business,

in the Additionally came that our quarter, our has had with the to past off year seen from but months. we through in and of more propane Refined segment Products significant million guidance business which glut over this for mess in right a liquid manage guidance. decline prices our product Unfortunately, in few another in margins line $XX caused February was a stabilized

Crude. We million. certain our Overall had million year; for and the costs and adjusted we or of reported the as for general this for million year the $X since have start impact charges about have our businesses one-time either throughout however, year. also expectations which case continued were growth sure to $XXX is we the $XXX by Obviously administration we of the the of with improved the overall Products seen quarter Water Refined EBITDA year

approximately adjusted year the EBITDA averaged volumes about pipelines, Financial on our was averaged the on and loss by results adjusted XXX,XXX million for approximately the this stored quarter the per discuss our EBITDA in through commitments That as terminals a million The The on at about Grand day in Glass impacts quarter, Mesa Volumes driven $XX sold third-party Mesa. guidance what upcoming Logistics improvements contributing liquids operating on going expect start that continue and will volumes and year-over-year of believe remainder $XXX loss trucking and million December. Mountain the Crude of our $XX fiscal XX% continue barrels per quarter Crude and in to the segment segment prior for this businesses day year, we operated generated net I'll segment with the million barrels increase Grand million pipeline in which basis. for quarter. the the Grand that physical result $XX million over upcoming on forward. volume Mesa through year to and gross $X compared Cushing this walk the totaled and for with with includes segment fiscal at growth for and without funding We'll segment $XX will in rail first well. year. each ranges XXX,XXX go We in growth Full Gulf we our marine, Coast. during Crude.

We on XXX,XXX year. day barrels Grand Mesa the are of upcoming per forecasting an average for

increase in the as We're this the in seeing the once processing So gas the are and starting in basins alleviated. DJ Basin volumes other well gathering fall increased margins and bottlenecks higher see come camputation to We're all volumes with barrel. over rates $XX through that significant utilization Cushing terminal oil the [ph] moving crude on our our per assets. other and benefits

basins production increase. barrel assuming stay level, about the counts upcoming optimistic crude grow $XX our and per or core this rig business for steady continue year volumes that are We to remain prices above in

opportunities the Crude transportation as ready have to soon the and as we gathering in will several evaluating market and are announce. update business something We

in we not this our our our on Grand assets assume are million into capital higher Mesa, basins increase between set expected to which XXXX be $XXX this and to current operate assets is [indiscernible] based the of increase forecasting any EBITDA we does margins $XXX the for segment transportation million significant utilization and on in With business. in adjusted investment

Volumes day per March per quarter, volumes per skim April EBITDA and year-over-year. producer Going which and Delaware during quarter was year. disposing barrels both barrels slightly over and segment XX% XXX,XXX Water for year Ford. Volumes this through are in a the for million, $X.X over quarter this day adjusted delay day completions XXX,XXX we January included the of million in May. coming impacted adjusted the loss $XX were oil on a to increased was of for and realized Water, for hedges $XXX million. barrels an approximately EBITDA XXX,XXX line by currently and Water February the in Water the Eagle increase averaged Full

have barrels XXXX Our with cut. the X.XX% production with volumes oil XXXX quarter Skim was X.XX%. approximately barrels skim XXXX averaged an oil cut day a during average crude over per per fiscal day crude of for

approximately XXXX to XX% at from We skim changes. oil any and oil pricing in our production hedged have $XX hedges expected direct March of limit barrel crude continued have approximately to impact per layer through

December also have We some hedges through running XXXX.

year Water to we customers. in approximately capacity business disposal of growth $XXX and million and disposal invested CapEx We have this existing new pipelines our as the support add carrier

million have Looking business, our ahead FY negotiated acquisitions XXXX $XXX to to identified to expect and million been invest $XXX that approximately we million in date. Water including to already approximately in $XXX

We are Delaware. in location constructing wells XX each new the facilities primarily with at multiple

of of the fiscal New core adding are Texas facilities XXX XX-mile pipelines of connections facilities connect We Pecos, of to pipelines central approximately our between over a connected XX owned including we'll end also producer our that State and in by and line Delaware. XXX miles miles our year have from will line owned to trunk new Mexico

in built believe up. world-class and Our are business for particularly Delaware a business have high slowing not DJ We and on expectations are in that we Water basins for the FY the we the XXXX. disposal down build growth

We have us numerous Water from be independents, majors producers disposal to contracting with to partner. the

We start pipelines up and are and facilities in if adding basins. those these facilities after soon building needed

we We're including the barrels this million organic are annualized the and system. day the we to expected over platform million business $XXX in see of Mike on on in well. businesses between Our million growth $XXX by growth XXXX the year this approximately today expect and XXX,XXX we on And barrels as system continued fiscal with and end as adjusted going day with per rate growth, through million this mentioned, year. existing forward X.XX over run EBITDA this generate acquisitions growth per FY investing volume capital $XXX of

resulted This the had in but adjusted price in pricing and quarter this volumes propane gallon The value business of of and an expectations did storage. volumes December million the flowing supply, on $XX to not Liquids first propane Our and Excess January, Also year. March. in than propane per the unfortunately for and not perform quarter. million generally the February plan of experienced did low wholesale cost. sales through Conway EBITDA was business perform drop business February unprecedented inventory from high in price a to significantly of March market demand our lower eroding falling out $X.XX $XX

Our during Butane business higher quarter. butane saw volumes margins and the

the of the current return lease joint to venture railcars number positive year off to and bring by the of burdened it and However, We're new Product a costs. prior end for for The railcar partner butane right continues start this with to a Sawtooth fiscal our this with volumes than to year. is the both business fleets by Magnum, be contracted storage season working grow storage higher size plan in online environment. the our year. volumes upcoming propane to We Refined

As in to reminder we XX% another remaining option buy a interest. Sawtooth three-year our and bagged own interest

business assumes Our our for a to guidance this million similar $XX investment. Liquid is the reduced to million and year environment range business $XX which

team cost and and including its experienced hedging. railcar year, modeling sales has several including supply commercial savings, more the structural impacts the made rigorous to changes last Liquids Our to mitigate additional reductions contracts, improved business

well. Retail our for business. and be than we in at forecast the was Retail was and We that on March called warm additionally only knew reported side as West cold month when margins East a the the the to colder our budget This time last for our January the April for eastern expect abnormally and of EBITDA right. was structural for and emerging made well normal the particularly commercial this original the high year's to market was in to the exceed as and segment, changes but especially Retail With the February for we $XX results. led region. million and February The $XXX and the quarter over February. still This as business quite were March. east Retail as we'd earnings as half hoped business, would cold includes forecasters year. volumes be Unfortunately strong current well would early the opportunities, portions year. for good million very Propane for a not performed

in invested we the growth capital Retail for business quarter capital we acquisitions Propane and $X $XX the million During growth in Retail Overall Profane. invested entire the million year. approximately of

sales, of sale generated cost quarter the results only segment year flow $XX this $X.X that XXXX. from which of million of times generated evaluating last billion XX fiscal over That one as year. fiscal we capital in our business in adjusted after was last this the cash a announced are EBITDA in we get benefit certain good decision net from to We and the prior we making acquisitions, year. cash maintenance we over adjust believe strategy this on we segment asset our core of reminder had executed an in of a the proceeds the when forward, Propane shareholders. excellent believe will sale With and growth were Since our also focus the time we segment to businesses generates have that we including flow invested value a some other but way that of in going

tax the will XXXX which in be We recognized gain analyzing will Propane, be are still tax of year. the from recognized sale of Retail that all the

related the and ordinary have losses tax gain loss depreciation losses certain this our Sawtooth expect to do remainder offset also to transaction expect the to this an through and we generate year amortization. through of tax we to including However,

$XX margins $XX on a a space year. seen of our the and call. earnings more is quarterly Colonial We Refined a We've tax reported to will values business. recovery update thorough this rack applications next for line million which and provide on million quarter benefit in the our approximately Products EBITDA adjusted on

are shipper primary margins continue year our line an are be rack as rather driver markets fundamentals a America. not values in supply-demand refinery around the maximize rack which declining space We well. imports appear operations as to this improve significant economics from change optimize space the colonial export of margins last and Line attempt slowly to do to Mexican to versus is year, history. pricing Latin local

a financed most of our we inventory expect through higher facility. addition balance to be capital which fiscal will year, business through our the With incremental gas the of storage, carry working slightly blending upcoming and

financing However, to of looking inventory we forward. are at going ways this the optimize

gas Refined FYXX million uses blending $XX similarly the business million to downside range for guidance for adjusted is as this scenario, new the $XX which past Our year operations. our

counter Water the a business reminder, our to be generally Refined As businesses. and Crude should cyclical

items about million and million Comp year anomaly one-time expected we a not several expected prior Our million were related at continue of additional these legal are $X.X as levels. not Workers' These costs corporate million $X.X including years, an costs compared adjustment this were to settlement legal costs prior and $XX.X also a incurred to to year. $X

have line year our with costs items. in full million been $XX were Our would approximate and without these guidance

Going $XX other of million $XX we to corporate forward to expense. be million expect and

this I fiscal our method segments. guidance think important of for have it of that providing for ranges is business each changed We're we year. note our

cash our Obviously As but meant same low be end correlated, at FY’XX high so not the portfolio it Water business the that we has but every when a perfectly diversified reminder, flows. have operate opposite. some at the Refined struggled balance in Products was should Crude FY’XX rather well it and to is not for the for business or that level performed offsets period, always and in end example structured the worked is

starting declared a this expectation unit this $X.XX to this for the we expects distribution annualized current of our to we of In in is segments our Board quarter. or well Our the would X.X third new the closing declared are with a following Crude also distribution extremely be Water products coverage trending potentially crude Propane least $X.XX summary, rebuild that We lower Management refined at coverage to NGL and distribution rate quarter oil our the to sale. which Retail the times at targeted to until we per the better. year fiscal chapter the higher price similar, XXXX at we guidance. recommend side expect with perform January would continue as

very appreciative our are and public the initiated have and the the of great operated growth We how changing. platform and that our business our a It people grown was company worked our retail business who strategy safely in launch platform, over of they business to but is years.

returning We at higher what vehicles valued be believe be our future. businesses in looking are should we the our and growth higher to

to focus, our growth to rebuild reducing narrowing self We a achieve are and capital. you our line to like Thank a of indebtedness to the your like cash from our in interest times open moving our per target we our We timeframe, times funding to and flow short should for targeted questions. coverage X.X leverage partnership, unit model organic continued X.XX for our able there. be distributable would in our or grow for better now now

Operator

James. Certainly. question [Operator Darren Horowitz of our comes with Raymond from Instructions] first line the And

now is line open. Your

Darren Horowitz

afternoon. Hey guys, good

the the the strategic sale EBITDA of million fiscal on built Mike, on the a capital the congratulations Water and million partnership? Solutions that per And the how from with new $XXX about unit outlined Propane remaining on on into possibly we how basis my commentary accretion, a and mentioned think an unit regard about XXXX Solutions dilutive acquisitions prepared the including for the first return neutral Retail or segment Trey, acquisitions, is guidance? initial new future of strategic perspective as cash swinging you to per stance I think very accretive guidance secondly, to flow just initiatives, First are those outlook assets also the for briefly to $XXX question should from Water

Robert Karlovich

Darren. Thanks

negotiated those close all by guidance quarter. yes, have first expected been to the end to are Those does include the of our So acquisitions. start acquisitions and

as as those that on identified factored release call into discussed and fiscal have also identified as is been in this our earnings We remaining we well. organic, It it’s fiscal this of well the our has year. generally that and the to coverage discussed. CapEx for into guidance facilities full we target The for pipelines been has year factored the the that distribution related the all

As maybe we returns to four our the similar a existing projects, bring slightly Acquisitions above level. done multiples far are but those generally expect projects on that, of our into those five at those Water as blended with times. infrastructure, the acquisitions down speaking to to

the be know that. be and in to capital. the far get that cash As debt Crude we per around key paydown last flow, Retail of the, benefits put Propane this redeployment reduction Mike replacing will delivered will Water Initially, But actually redeployment distributable has flow don’t into of year together. haven’t will from business highly what the cash DCF forward. if and will the the multiple they that projects $XX million is the we interest approximately replacing million going $XX are costs through capital some color to of and generated paydown, from as I key accretion of any infrastructure that we accretive unit for which debt or the but ultimate

Michael Krimbill

will our, on five the would multiple Water So it add I times. be Darren, just less general, than in

Darren Horowitz

Okay.

the of So that’s to the facility, peak just currently how much your the that regard obviously of of working eyes or intrinsic and profile in with much meant savings that is can debt agencies ebbing gone and with regard debt cap think the heating amount paid they the down, not risk you to interest the facility of Propane how us composition means do how being going working you during that on forward, is couple and hit cap of rated things, the to just for the you flex what outline and the where what to rating going could the view with expense be, season, might company? flowing Trey, Retail but what seasonality

Robert Karlovich

Right.

seasons. capital a working and is we’ll business The as flow So well impact maintained build business Liquids that some primary ebb working Liquids our our butane in as our business on as and will Products Refined still have we we which the uses through are capital. of propane we minor have have our and

generally agencies of as have better a five Retail leverage credit, Retail an very or right business for in at close as Propane widely are transaction exposure benefit highly that gets speaking general. However, the should credit level Overall, by to the as times all-in that to us us looking well from viewed and reducing a to positive this Propane deleveraging is be gate. not out the basis

expect viewed positive earnings would key the this a be rating as this delivering announcement. So we to Obviously, post will be transaction.

we savings, key as how go will in be far the reducing interest As about debt.

have the As several we I mentioned on opportunities. call

look term cost maturities in evaluating debt. at pieces down be obviously have of near of go opportunistic will paper, but may that we how some and We paying to we about again higher the

we Mike acquisition our reduce As mentioned, will facility.

million million to paydown that redeployed So and would acquisitions, in in take of remainder off top go in debt you the to the the $XXX comes future. million the water when be the $XXX proceeds and $XXX then

Darren Horowitz

that’s program is guidance by my you as helpful. XXX,XXX a think end the of grow more EBITDA or for million throughout is fiscal timing the XXXX, does year? fiscal remaining or third is completion question I And as the this $X.XX that Okay, said of barrels fiscal then more such segment fourth it on just that being from end the that the Water XX XX-well wells last up year, weighted volumes linear quarter

Michael Krimbill

at in Your we’re $XXX I is first thing said think and rate third about so it correct, over fourth run was million. quarter where weighted budget, fact the running now we to April of was and more

ramp above our guidance. to So up it will

that rate. be end on we I so the quarter of come will to XXX high end at So run XXX, kind a it fourth up level think to

Darren Horowitz

thanks Okay, Mike. appreciate it. I

Robert Karlovich

Okay.

we by Darren, facilities. we Delaware be that linear add to add disposal basin as to pretty are the to expecting Just

We comes online, gas to bump oil and the half are gathering as is of amount Crude expecting that is the of expected in out significant that processing DJ a year second basin. online and similar of there come a Water to Crude

Darren Horowitz

Trey. Thanks

Operator

Instructions] Sunil comes the Global Thank [Operator you. Securities. Seaport question Sibal Our with line of from next

is now line Your open.

Sunil Sibal

your just level the down maturity balance, Couple when debt and thanks all a primary guys for focus from managing terms in is at paying of afternoon be it of the particular good hi, me look Yes any you debt? that issuance on clarity the call. will or questions

Robert Karlovich

as to time, to I will in at so that XXXX highest look we the the sure X, that next term is our look near and to debt X.X% make we which XXs cost that something are at. as the only higher real X out have desire our take a so July XX X that this, time of obviously The but maturity. it before we are have we callable, at tranche fund would to maturity want of are do debt. coupon, that obviously those or we of cost The said ability or is part that's So

we term So that’s X, obviously depending we would X, evaluate attractive not that our think XX, the X. with as obviously and trades pretty a probably longest that coupon at on anything well do where also debt

Sunil Sibal

about talk numbers your basis? that. for roll And mentioned a little propane Thanks hedging on of inventory vis-à-vis it. Got losses bit terms that how with the in and on the region. in your then your into a to inventory you Conway does that strategy you think then kind comments quarterly the of Can inventory of I regard something

Michael Krimbill

first that other so well storing the reducing as of as are at we in areas our are storage some volume midcontinent. Sure, Conway amount the and capacity we

through with are having holding being product to pricing how in are in ensure we not we downturn that or in more don't, strategic transit. a product we’re customers our that We left contracting

delivered in to So the mitigate days lower to propane looking Those and alleviate of the barrels much had that's are XX what late are methodology was contract February price, our well. of impact. at that happened we in changing are ways we railcars February some so coming for primary on January we out a storage through

the to February that decline, against. will Conway from However, say protect $X.XX anything to price change absolutely in have abnormal can and mid if and and between December that? you of you not Mike, the something that I was significant add

Sunil Sibal

are again, debt, exposure right? terms adjusting strategy, debt like so seems So in managing net that you your of

Michael Krimbill

Correct.

Sunil Sibal

if Logistics Crude DJ of they significant exposure? assets are Okay side logistics or what for have the basins any thanks your then and other most focused basin in are any that, on

Michael Krimbill

the Mesa the the Ford, DJ and Eagle also market do We the Mid-Continent, in Cushing in as our the as with we Bakken, and obviously well our significant and So largest Permian, Oklahoma. barrels in is assets. have Grand

that, of do our some well on in Coast, Comfort. to we [ph] So as Point terminals Oklahoma continued as Gulf the

do largest, but we the our is basins. in of DJ all the have presence a really active So

Sunil Sibal

you've think seems lastly, – then like you correct? and I Okay in perspective, it timing retail propane from guidance ‘XX a quarter of included one full your year

Michael Krimbill

Correct, that's in category. our other

Sunil Sibal

I thanks. Got all had. That’s Okay. it

Robert Karlovich

Thanks Sunil.

Operator

back that so Thank Mike over remarks. closing CEO, and turn the Mr. to questions, Krimbill conference with you like I'd showing no for to I'm further

Michael Krimbill

turnout a thank Thank had appreciate We you. Well it. good you. and we pretty

to you three We Thanks. and less that in we'll see we'll will talk continue so than you well probably, months, executing soon.

Operator

conclude Ladies you and This in conference. participating gentlemen, for does the today's thank program.

Everyone all disconnect. a may have day. wonderful You

NGL Energy Partners (NGL) 30 May 182018 Q4 Earnings call transcript