NGL Energy Partners LP Announces Sale of Southeast Refined Products Assets

NGL Energy Partners LP (NYSE:NGL) ("NGL,” "our,” or the "Partnership”) today announced that it has signed a definitive agreement to sell TransMontaigne Product Services, LLC ("TPSL") and associated assets to a strategic buyer with substantial assets for estimated proceeds of approximately $300 million, including equity consideration, inventory, and net working capital, based on June 30, 2019 values and subject to actual values at closing. The Partnership also expects to significantly reduce letter of credit commitments following the sale. TPSL makes up a portion of NGL's Refined Products reporting segment.

The divested assets include:

• TPSL Terminaling Services Agreement with TransMontaigne Partners LP, including the exclusive rights to utilize 18 terminals;
• Line space along Colonial and Plantation Pipelines;
• 2 wholly-owned refined products terminals in Georgia and multiple third-party throughput agreements; and
• All associated customer contracts, inventory and other working capital associated with the assets.

Proceeds from this transaction will be used to reduce outstanding indebtedness under the Partnership’s revolving credit facility.

"NGL continues to focus on its core areas where we have competitive strength. These focus areas generate stable and predictable cash flows as we grow our mix of long-term contracted revenues. The sale of TPSL is part of this strategy and a result of the strategic review of the Refined Products business announced earlier this year," stated Mike Krimbill, NGL's CEO. "Along with the significant reduction in inventory and working capital associated with this business, this transaction reduces borrowings on our working capital revolver and enhances the Partnership's liquidity and overall leverage profile. Managing our leverage and cost of capital are fundamental to our business strategy as we continue our strategic growth plan while maintaining focus on a strong balance sheet."

The transaction is subject to certain regulatory and other customary closing conditions and is expected to close during the second fiscal quarter.

Advisors and Counsel

TD Securities (USA) LLC and Credit Suisse Securities (USA) LLC are acting as financial advisors to NGL. Winston & Strawn LLP is acting as legal counsel to NGL.

Forward-Looking Statements

Certain matters contained in this Press Release include "forward-looking statements." All statements, other than statements of historical fact, included in this Press Release may constitute forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include, but are not limited to, the risk factors discussed from time to time in each of our documents and reports filed with the SEC.

Readers are cautioned not to place undue reliance on any forward-looking statements contained in this Press Release, which reflect management's opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements.

About NGL Energy Partners LP

NGL Energy Partners LP is a Delaware limited partnership. NGL owns and operates a vertically integrated energy business with four primary businesses: water solutions, crude oil logistics, NGL logistics and refined products/renewables. For further information, visit the Partnership’s website at www.nglenergypartners.com.

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