NGL Energy Partners lowers 2016 guidance
OREANDA-NEWS. February 12, 2016. NGL Energy Partners lowered its 2016 earnings guidance by \\$50mn to \\$450mn, citing lower sales from its wastewater disposal business given a decline in crude and gas drilling.
The Tulsa-based midstream partnership is also seeking to reduce capital expenditures due to lower commodity prices. NGL Energy will cut capital expenditures by \\$200mn this year by combining its previously announced Grand Mesa pipeline project, which would carry crude from the Julesburg basin in Colorado to Cushing, Oklahoma, with the Saddlehorn Pipeline project.
In the next 18 months, NGL Energy Partners expects to spend \\$350mn on projects, with \\$250mn of that total already committed.
NGL Energy reported overall sales fell sharply in the last quarter of 2015, to \\$2.685bn compared with \\$4.552bn in the last quarter of 2014. The largest decline was seen in its crude oil logistics segment, where revenues fell more than \\$1mn compared with the prior year.
However, its quarterly net income stood at \\$29.621mn, up sharply from the net loss of \\$5.269mn reported in the last quarter of 2014, as it reported lower costs.
In its NGL segment, the company reported retail propane margins rose 4.5pc from year-ago levels despite a 12pc decline in volumes sold as a result of a mild winter.