NGL Energy Partners LP : Quarterly Investor Presentation

Investor Presentation

August 2023

NGL - Company Overview1

Water Solutions

▪Provides water transportation, treating, recycling and handling services for upstream customers

▪Largest integrated water solutions network of injection wells and large diameter pipe in the Delaware Basin

▪Predictable cash flows supported by long-term fixed fee contracts, acreage dedications and minimum volume commitments

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Crude Oil Logistics

▪Purchases crude oil from producers and marketers for sale at multiple refineries and trading hubs

▪Network of owned storage, terminal and transportation services, including Grand Mesa Pipeline

▪Supported by acreage dedications and minimum volume commitments

Liquids Logistics

▪Supplier of NGL's, refined products and

biodiesel to a broad range of end-users across the United States and Canada

▪Operations are conducted through 25 owned terminals, third-party storage and terminal facilities, nine common carrier pipelines and a fleet of leased railcars

▪Provides marine exports of butane through owned facility located in Chesapeake, VA

•Owner of Ambassador Pipeline in Michigan, the largest retail propane demand state in the U.S

Pg 2	(1) Assets as of 3/31/23.

NGL Financial Strategy & Priorities

Financial Leverage

• Free cash flow utilized for debt reduction
• Monetize non-core assets using proceeds to reduce absolute debt
• Comfortably below 4.0x total leverage by March 31, 2024

Debt Maturities

Financial Policies

• Capital Structures

Liquidity

• Retire 2025 unsecured notes no later than March 31, 2024, possibly sooner
• Refinance remaining notes outstanding within the first half of calendar 2024
• Debt reduction as the top strategic priority
• Currently, no plan to pay preferred distributions in calendar 2023
• Purchased $99.3MM of the 2025 unsecured notes since March 31, 2023
• Anticipated cash flows from operations and the borrowing capacity under ABL facility will be sufficient to meet liquidity needs, manage inventory throughout blending and heating seasons
• Closed permanent extension of $100MM ABL accordion through stated maturity of February 2026

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NGL - Improving Leverage

TTM Adjusted EBITDA and Leverage Trend

	700					7.00x
Millions)			6.11x		$633	$643	(TTM)
	5.96x		$617
650
					6.00x
EBITDA (In	600						Adj EBITDA
550	$575				5.00x
	$571	5.28x
TTM Adjusted					Total Debt/
500				4.56x	4.40x
				4.00x
450
	400					3.00x
		6/30/2022	9/30/2022	12/31/2022	3/31/2023	1QFY24
			Adj EBITDA (TTM)	Leverage Ratio

Asset Sales of $21.1 Million	Water Solutions Disposal Fees up in 1Q24 to
$0.64 from $0.58 in 1Q23

1Q'24 Highlights

$99.3 Million in Debt Purchased	Reduced Total Leverage to 4.40x, Down from
4.56x at March 31, 2023

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Water - Operational & Financial Trend

Strong Operational & Financial Performance

Adjusted EBITDA - 26% 3-Year CAGR

	$550			$485+
	$500
			$462
	$450
(In Millions)	$400
$350	$342
$300
	$242
	$250
	$200
	$150
	FY21	FY22	FY23	FYE24

Produced Water Processed - 23% 3-Year CAGR

	3,000
(KBPD)					2,560
2,500			2,327
Pcocessed	2,000		1,798
1,500	1,365
Water	1,000
Produced
500
	-
		FY21	FY22	FY23	FYE24

Operating Expense - Down 14%

	$0.30
	$0.29
Barrel)	$0.29
$0.28
	$0.27
(Per
$0.27
Expense	$0.26
		$0.25	$0.25
$0.25
Operating
$0.24
$0.23
	$0.22
	FY21	FY22	FY23	FYE24

Skim Oil Production - 27% 3-Year CAGR

	4,500			~
				4,000
	4,000			3,764
	3,500
Bpd	3,000		2,864
Sold	2,500	1,957
Oil	2,000
Skim	1,500
	1,000
	500
	-
		FY21	FY22	FY23	FYE24

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All references to FYE24 are based on most recent guidance & estimates.

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