| From: Elroy | 3/19/2024 9:14:27 AM | | | | | | Lets see - the next bit of news expected from NGL is they planned to do some asset sales in Q1 2024, and soon thereafter pay the second half of the arrearage on their various tranches of preferred stock (which are all currently in arrears).
If the sale goes through, I'd expect an announcement by early April latest (perhaps in March if they put out a press release the day of the sale). That could help the preferred stock a bit if they announce the second arrearage payment along with the sale.
I would think it makes sense for them (if the sale is going through) to make the second arrearage payment before April 15th, and then on April 15% make the regular preferred stock payments, meaning their all their obligations are current for the first time in about three years.
The next bit of news after that is fiscal 2025 (March) guidance. That will come on about June 1st with the Q1 2024 earnings release. The main use of cash going forward (once the second half of the arrearage is paid) is retirement of about $550m series D preferred stock. It is due in summer 2027, so they've got three years to save that up or refinance or do whatever the plan to do about that.
My hunch is NGL can get to $9 by this time next year. But the fsical 2025 guidance (how high will EBITDA go?) is the key determinant of the share price. |
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| From: Elroy | 3/27/2024 6:54:13 AM | | | | | | 3 Refining & Marketing MLP Stocks for Your Basket
zacks.com
While uncertainties persist regarding oil consumption and fuel market volatility, select stocks like Sunoco LP (SUN Quick Quote SUN- Free Report) , Global Partners LP (GLP Quick Quote GLP- Free Report) and NGL Energy Partners LP (NGL Quick Quote NGL- Free Report) show promise for above-average performance and stock appreciation. These firms possess characteristics that can mitigate the impact of inflation, and their defensive posture and reliance on fee-based business models render them well-equipped for an uncertain market environment, particularly amid rising consumer prices. |
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| From: Elroy | 4/4/2024 6:58:37 PM | | | | | | This is interesting, and perhaps disappointing, not sure.
They paid half the arrearage in Feb, with indication that they would do up to $200m in asset sales before March 31st, and pay the second half soon after. This press release says they're paying 55.4% of the outstanding arrearage.
Maybe the asset sales didn't go through? Not sure why they're not paying the full amount....
TULSA, Okla., April 04, 2024--( BUSINESS WIRE)--NGL Energy Partners LP (NYSE: NGL) announced today that the Board of Directors of its general partner approved a distribution of 55.4% of the outstanding arrearages for the quarter ending March 31, 2024 to be paid to the holders of the Partnership’s 12.544% Class B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units ("Class B Preferred Units") and the 9.625% Class C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units ("Class C Preferred Units") in accordance with the terms outlined in NGL’s partnership agreement. Each of the Class B Preferred Units quarterly distribution of $3.0224 per unit and the Class C Preferred Units quarterly distribution of $2.6790 per unit will be made on April 18, 2024 to holders of record at the close of trading on April 12, 2024.
Additionally, the Board of Directors declared a cash distribution in the amount of $77,140,426, which represents the 55.4% of the outstanding arrearages on the Class D preferred units as of March 31, 2024. The arrearage payment on the Class D Preferred units will be made on April 18, 2024.
The total amount of the distributions will be $120,000,000 which will be financed with cash on the Balance Sheet and a draw on the ABL. |
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| From: Elroy | 4/5/2024 2:03:26 PM | | | | | | NGL Energy Partners LP (NYSE:NGL) ("NGL," or the "Partnership") announced today that it has completed the sale of its North and South Ranches. These two New Mexico ranches have combined acreage of approximately 122,250 acres, in the core of the Delaware.
New Mexico Ranches Highlights:
- Approximately $70.0 million in proceeds, including working capital
- Including asset sales in FY24, we have exceeded the $150 million asset sale guidance
"NGL remains focused on our commitment to deliver reliable produced water management for our customers while remaining focused on the environment and the sustainability of our operations," commented Doug White, EVP of NGL Water Solutions. "Today’s announcement highlights our focus on portfolio optimization, especially as we look for additional opportunities to enhance the portfolio with opportunities like the recently announced LEX II Project."
NGL owns and operates the largest integrated network of large diameter wastewater pipelines, disposal wells and produced water handling systems in the Delaware Basin. NGL’s Water Solutions segment operates in several of the most prolific crude oil and natural gas producing basins, including the Delaware, Eagle Ford and DJ Basins. |
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| From: Elroy | 4/9/2024 9:29:49 PM | | | | | | Mo money.....
NGL Energy Partners LP Announces the Payment of All Outstanding Distribution Arrearages for Class B, Class C and Class D Preferred Units as of Payment Date April 25, 2024
finance.yahoo.com
Each of the Class B Preferred Units will receive $2.475 to fully pay all outstanding distribution arrearages and interest as of April 25, 2024, which includes the distribution earned in the quarter ending March 31, 2024. The distribution will be paid on April 25, 2024, to the holders of record at the close of trading on April 19, 2024.
Each of the Class C Preferred Units will receive $2.186 to fully pay all outstanding distribution arrearages and interest as of April 25, 2024, which includes the distribution earned in the quarter ending March 31, 2024. The distribution will be paid on April 25, 2024, to the holders of record at the close of trading on April 19, 2024. |
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| From: Elroy | 4/9/2024 9:35:56 PM | | | | | | Lets see, the first press release said they're paying 54% of the arrearage, and the second press release said they're paying the rest.
So......
NGL-B gets $3.022 first and then $2.475 second, for a total of $5.50, all earned by April 19th.
NGL-C gets $2.679 first and then $2.186 second, for a total of $4.87, all earned by April 19th.
After that I guess these guys pay regular dividends each quarter, with a yield about 12.8% on a $25 face value, that's $0.80 per quarter.
We gonna be rich! |
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| From: Elroy | 4/18/2024 7:03:42 AM | | | | | | The preferred dividends hit my account.
The second part of the second arrearage was earned yesterday, and will be paid in a week.
I wonder where the B's and C's will trade today. |
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| To: Elroy who wrote (72) | 4/19/2024 1:39:53 AM | | From: FIFO_kid2 | | | | | In FRMO's 2024 3rd quarter conference call had some very interesting commentary about the water disposal business especially if you own land in the region. One is the current massive inflation rate involved zero costs to the owner and the current trend of rising rates well above inflation continuing to be very positive. I wonder what size land position the partnership holds or has rights to for water disposal. |
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| To: FIFO_kid2 who wrote (73) | 4/19/2024 7:38:04 AM | | From: Elroy | | | | the current massive inflation rate involved zero costs to the owner and the current trend of rising rates well above inflation continuing to be very positive. I wonder what size land position the partnership holds or has rights to for water disposal.
What do you mean?
"Rising rates" of what? Interest rates? Rates per barrel to transport water? What rates?
NGL just sold some land for $70 million. I don't really know what other land items they have on their balance sheet. What is the relationship to land and land rights to what you are discussing? |
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| To: Elroy who wrote (74) | 4/19/2024 7:58:44 AM | | From: Elroy | | | | This is the bit from the call he was talking about. I can't make heads or tails of what it means....
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The addition to oil and gas, what comes out of ground for every barrel of water you pump down there, it’s roughly 5 barrels of oil, which is called, I mean, 5 barrels of water, which is called produced water comes up. What are you going to do with it? You got to put it somewhere. You can’t transport it very far. It’s too expensive because water is heavy. You can make some efforts to recycle it, and it’s done in some cases, but it’s a lot of water and it’s very expensive. So what they do with this is they dispose of it by pumping it back into the ground. Now to give you an idea of the magnitude of the problem, I say a barrel of oil, very few people know what a barrel oil is, a barrel of oil or a barrel itself a barrel of water. It’s 42 gallons.
No one knows what a barrel looks like, if we do gallons, everyone knows what gallon looks like. So you take 8 million barrels times 42 million — 42 barrels per each barrel of oil, multiplied by doing this right, yes. So it’s 8 million barrels of oil, 42 gallons in a barrel. So now that’s 336 million per day times five. That’s 1.68 billion to be gallons of water had to be disposed of each and every day. So the value to land is what’s under the land. And the — there’s only a finite amount of land that can be used for that purpose, and we’re going to run out of land one day. So the price for injection in produced water keeps going up. It used to be, a couple of years ago, $0.01 a barrel. Now it might be $0.06 a barrel and $0.50 or even $1 a barrel on day is readily conceivable.
So if you start figuring in how much, let’s say, let’s say, an acre of land. And let’s say, for a year, I’m making up numbers, just to give you — show you how huge these aren’t real numbers. So let’s say you could pump 60,000 barrels of water into the ground every day for a finite period of time. Well, 60,000 barrels of water is in terms of gallons, 2.5 million gallons a day. So if you’re getting, let’s say, $0.01, well, let’s say you’re getting $0.10. So that’d be $6,000 a day. So you could do it for 365 days. Maybe they’ll do longer. So that’s $2,190,000 with no expense associated with just giving somebody right to put water on your property, underground. So let’s do it again. It’s 60,000 barrels a day, if that’s what the number was. It’s $0.10 a barrel.
$6,000 a day, times 365 days at $2,190,000. They can only do it for a year. The acre of land this has no meaningful assets on it, that acre of land, maybe you could buy it for $500. That’s what they valued at. But if only for a year, you get $2,190,000 and you still have the acre surface land is still there. Next thing, easements. Eventually you’re going to run out land and go further out? Well, you can’t put any more water in that acre, but you got to bring the water somewhere else and somebody has to have a pipeline that traverses your land and you get a lease on that. So the acres you save worth $500 an acre. Well, what do you think they’re going to charge somebody for right away. I think it’s $500 a year. Even it was that’s 100% return on capital.
What if it was $10,000 a year? What if have you had 400,000 acres and all you got was an easement, $10,000 a year. Well, it’s 400,000 acres of Class B land, $10,000 a year. That’s probably even $1,000 a month. See what that is, that’s $4 billion would it be cash flow with no expenses against it. This is the after the produced water. So I think those figures I can do other kind of things. I think those figures speak for themselves. People that know about them because the produced water problem only became a big deal a couple of years ago. And numbers have not gotten to the size and the price to dispose the barrels have not gotten to a level where it’s a problem. But it’s rapidly going in that direction. So that’s the value proposition among other things, I would say. |
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