Condensed Consolidating Guarantor and Non-Guarantor Financial Information (Tables)

3 Months Ended

Jun. 30, 2015

Condensed Consolidating Guarantor and Non-Guarantor Financial Information

Schedule of Condensed Consolidating Balance Sheets

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Condensed Consolidating Balance Sheet

(U.S. Dollars in Thousands)

	June 30, 2015
	NGL Energy
	Partners LP		NGL Energy		Guarantor			Non-Guarantor			Consolidating
	(Parent) (1)		Finance Corp. (1)		Subsidiaries			Subsidiaries			Adjustments			Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	22,693	$	—	$	13,642		$	7,171		$	—		$	43,506
Accounts receivable—trade, net of allowance for doubtful accounts	—		—		889,449			15,747			—			905,196
Accounts receivable—affiliates	11		—		18,172			557			—			18,740
Inventories	—		—		487,313			1,751			—			489,064
Prepaid expenses and other current assets	—		—		113,594			17,295			—			130,889
Total current assets	22,704		—		1,522,170			42,521			—			1,587,395
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation	—		—		1,204,560			539,024			—			1,743,584
GOODWILL	—		—		1,419,487			32,167			—			1,451,654
INTANGIBLE ASSETS, net of accumulated amortization	16,936		—		1,170,731			63,811			—			1,251,478
INVESTMENTS IN UNCONSOLIDATED ENTITIES	—		—		217,636			256,585			—			474,221
NET INTERCOMPANY RECEIVABLES (PAYABLES)	1,371,288		—		(1,333,513		)	(37,775		)	—			—
INVESTMENTS IN CONSOLIDATED SUBSIDIARIES	1,727,335		—		73,107			—			(1,800,442		)	—
LOAN RECEIVABLE—AFFILIATE	—		—		23,775			—			—			23,775
OTHER NONCURRENT ASSETS	—		—		107,651			2,893			—			110,544
Total assets	$	3,138,263	$	—	$	4,405,604		$	899,226		$	(1,800,442	)	$	6,642,651
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable—trade	$	—	$	—	$	744,886		$	10,176		$	—		$	755,062
Accounts payable—affiliates	1		—		25,473			118			—			25,592
Accrued expenses and other payables	16,624		—		213,484			7,299			—			237,407
Advance payments received from customers	—		—		66,248			458			—			66,706
Current maturities of long-term debt	—		—		3,863			70			—			3,933
Total current liabilities	16,625		—		1,053,954			18,121			—			1,088,700
LONG-TERM DEBT, net of current maturities	1,100,000		—		1,610,868			257,201			—			2,968,069
OTHER NONCURRENT LIABILITIES	—		—		13,447			3,635			—			17,082
EQUITY:
Partners’ equity	2,021,638		—		1,727,335			620,386			(2,347,604		)	2,021,755
Accumulated other comprehensive loss	—		—		—			(117		)	—			(117		)
Noncontrolling interests	—		—		—			—			547,162			547,162
Total equity	2,021,638		—		1,727,335			620,269			(1,800,442		)	2,568,800
Total liabilities and equity	$	3,138,263	$	—	$	4,405,604		$	899,226		$	(1,800,442	)	$	6,642,651

(1) The parent and NGL Energy Finance Corp. are co-issuers of the 2019 Notes and 2021 Notes. Since the parent received the proceeds from the issuance of the 2019 Notes and 2021 Notes, all activity has been reflected in the parent column.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Condensed Consolidating Balance Sheet

(U.S. Dollars in Thousands)

	March 31, 2015
	NGL Energy
	Partners LP		NGL Energy		Guarantor			Non-Guarantor			Consolidating
	(Parent) (1)		Finance Corp. (1)		Subsidiaries			Subsidiaries			Adjustments			Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	29,115	$	—	$	9,757		$	2,431		$	—		$	41,303
Accounts receivable—trade, net of allowance for doubtful accounts	—		—		1,007,001			17,225			—			1,024,226
Accounts receivable—affiliates	5		—		16,610			583			—			17,198
Inventories	—		—		440,026			1,736			—			441,762
Prepaid expenses and other current assets	—		—		104,528			16,327			—			120,855
Total current assets	29,120		—		1,577,922			38,302			—			1,645,344
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation	—		—		1,093,018			524,371			—			1,617,389
GOODWILL	—		—		1,372,690			30,071			—			1,402,761
INTANGIBLE ASSETS, net of accumulated amortization	17,834		—		1,195,896			74,613			—			1,288,343
INVESTMENTS IN UNCONSOLIDATED ENTITIES	—		—		217,600			255,073			—			472,673
NET INTERCOMPANY RECEIVABLES (PAYABLES)	1,363,792		—		(1,319,724		)	(44,068		)	—			—
INVESTMENTS IN CONSOLIDATED SUBSIDIARIES	1,834,738		—		56,690			—			(1,891,428		)	—
LOAN RECEIVABLE—AFFILIATE	—		—		8,154			—			—			8,154
OTHER NONCURRENT ASSETS	—		—		110,120			2,717			—			112,837
Total assets	$	3,245,484	$	—	$	4,312,366		$	881,079		$	(1,891,428	)	$	6,547,501
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable—trade	$	—	$	—	$	820,441		$	12,939		$	—		$	833,380
Accounts payable—affiliates	—		—		25,690			104			—			25,794
Accrued expenses and other payables	19,690		—		165,819			9,607			—			195,116
Advance payments received from customers	—		—		53,903			331			—			54,234
Current maturities of long-term debt	—		—		4,413			59			—			4,472
Total current liabilities	19,690		—		1,070,266			23,040			—			1,112,996
LONG-TERM DEBT, net of current maturities	1,100,000		—		1,395,100			250,199			—			2,745,299
OTHER NONCURRENT LIABILITIES	—		—		12,262			3,824			—			16,086
EQUITY:
Partners’ equity	2,125,794		—		1,834,738			604,125			(2,438,754		)	2,125,903
Accumulated other comprehensive loss	—		—		—			(109		)	—			(109		)
Noncontrolling interests	—		—		—			—			547,326			547,326
Total equity	2,125,794		—		1,834,738			604,016			(1,891,428		)	2,673,120
Total liabilities and equity	$	3,245,484	$	—	$	4,312,366		$	881,079		$	(1,891,428	)	$	6,547,501

(1) The parent and NGL Energy Finance Corp. are co-issuers of the 2019 Notes and 2021 Notes. Since the parent received the proceeds from the issuance of the 2019 Notes and 2021 Notes, all activity has been reflected in the parent column.

Schedule of Condensed Consolidating Statements of Operations

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Condensed Consolidating Statement of Operations

(U.S. Dollars in Thousands)

	Three Months Ended June 30, 2015
	NGL Energy
	Partners LP			NGL Energy		Guarantor			Non-Guarantor			Consolidating
	(Parent) (1)			Finance Corp. (1)		Subsidiaries			Subsidiaries			Adjustments			Consolidated
REVENUES	$	—		$	—	$	3,496,881		$	51,179		$	(9,591	)	$	3,538,469
COST OF SALES	—			—		3,323,661			8,412			(9,522		)	3,322,551
OPERATING COSTS AND EXPENSES:
Operating	—			—		87,624			20,359			(69		)	107,914
General and administrative	—			—		56,670			5,811			—			62,481
Depreciation and amortization	—			—		45,539			14,292			—			59,831
Loss on disposal or impairment of assets, net	—			—		421			—			—			421
Operating Income (Loss)	—			—		(17,034		)	2,305			—			(14,729		)
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated entities	—			—		2,895			5,823			—			8,718
Interest expense	(17,801		)	—		(10,993		)	(2,082		)	74			(30,802		)
Other income (expense), net	—			—		(1,225		)	124			(74		)	(1,175		)
Income (Loss) Before Income Taxes	(17,801		)	—		(26,357		)	6,170			—			(37,988		)
INCOME TAX PROVISION	—			—		(507		)	(31		)	—			(538		)
EQUITY IN NET INCOME (LOSS) OF CONSOLIDATED SUBSIDIARIES	(24,600		)	—		2,264			—			22,336			—
Net Income (Loss)	(42,401		)	—		(24,600		)	6,139			22,336			(38,526		)
LESS: NET INCOME ALLOCATED TO GENERAL PARTNER												(15,359		)	(15,359		)
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS												(3,875		)	(3,875		)
NET INCOME (LOSS) ALLOCATED TO LIMITED PARTNERS	$	(42,401	)	$	—	$	(24,600	)	$	6,139		$	3,102		$	(57,760	)

(1) The parent and NGL Energy Finance Corp. are co-issuers of the 2019 Notes and 2021 Notes.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Condensed Consolidating Statement of Operations

(U.S. Dollars in Thousands)

	Three Months Ended June 30, 2014
	NGL Energy
	Partners LP			NGL Energy		Guarantor			Non-Guarantor			Consolidating
	(Parent) (1)			Finance Corp. (1)		Subsidiaries			Subsidiaries			Adjustments			Consolidated
REVENUES	$	—		$	—	$	3,627,586		$	21,057		$	(29	)	$	3,648,614
COST OF SALES	—			—		3,514,946			19,136			(29		)	3,534,053
OPERATING COSTS AND EXPENSES:
Operating	—			—		66,061			1,375			—			67,436
General and administrative	—			—		27,764			109			—			27,873
Depreciation and amortization	—			—		38,546			829			—			39,375
Loss (gain) on disposal or impairment of assets, net	—			—		558			(126		)	—			432
Operating Loss	—			—		(20,289		)	(266		)	—			(20,555		)
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated entities	—			—		2,565			—			—			2,565
Interest expense	(12,392		)	—		(8,102		)	(11		)	11			(20,494		)
Other income (expense), net	—			—		(532		)	152			(11		)	(391		)
Loss Before Income Taxes	(12,392		)	—		(26,358		)	(125		)	—			(38,875		)
INCOME TAX PROVISION	—			—		(958		)	(77		)	—			(1,035		)
EQUITY IN NET LOSS OF CONSOLIDATED SUBSIDIARIES	(27,583		)	—		(267		)	—			27,850			—
Net Loss	(39,975		)	—		(27,583		)	(202		)	27,850			(39,910		)
LESS: NET INCOME ALLOCATED TO GENERAL PARTNER												(9,381		)	(9,381		)
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS												(65		)	(65		)
NET LOSS ALLOCATED TO LIMITED PARTNERS	$	(39,975	)	$	—	$	(27,583	)	$	(202	)	$	18,404		$	(49,356	)

(1) The parent and NGL Energy Finance Corp. are co-issuers of the 2021 Notes.

Schedule of Condensed Consolidating Statements of Comprehensive Income (Loss)

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Condensed Consolidating Statements of Comprehensive Income (Loss)

(U.S. Dollars in Thousands)

	Three Months Ended June 30, 2015
	NGL Energy
	Partners LP			NGL Energy		Guarantor			Non-Guarantor			Consolidating
	(Parent) (1)			Finance Corp. (1)		Subsidiaries			Subsidiaries			Adjustments		Consolidated
Net income (loss)	$	(42,401	)	$	—	$	(24,600	)	$	6,139		$	22,336	$	(38,526	)
Other comprehensive loss	—			—		—			(8		)	—		(8		)
Comprehensive income (loss)	$	(42,401	)	$	—	$	(24,600	)	$	6,131		$	22,336	$	(38,534	)

(1) The parent and NGL Energy Finance Corp. are co-issuers of the 2019 Notes and 2021 Notes.

	Three Months Ended June 30, 2014
	NGL Energy
	Partners LP			NGL Energy		Guarantor			Non-Guarantor			Consolidating
	(Parent) (2)			Finance Corp. (2)		Subsidiaries			Subsidiaries			Adjustments		Consolidated
Net loss	$	(39,975	)	$	—	$	(27,583	)	$	(202	)	$	27,850	$	(39,910	)
Other comprehensive income	—			—		185			—			—		185
Comprehensive loss	$	(39,975	)	$	—	$	(27,398	)	$	(202	)	$	27,850	$	(39,725	)

(2) The parent and NGL Energy Finance Corp. are co-issuers of the 2021 Notes.

Schedule of Condensed Consolidating Statements of Cash Flows

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Condensed Consolidating Statement of Cash Flows

(U.S. Dollars in Thousands)

	Three Months Ended June 30, 2015
	NGL Energy
	Partners LP			NGL Energy		Guarantor			Non-Guarantor
	(Parent) (1)			Finance Corp. (1)		Subsidiaries			Subsidiaries			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	(20,028	)	$	—	$	93,216		$	8,641		$	81,829
INVESTING ACTIVITIES:
Purchases of long-lived assets	—			—		(100,508		)	(21,602		)	(122,110		)
Acquisitions of businesses, including acquired working capital, net of cash acquired	—			—		(63,898		)	—			(63,898		)
Cash flows from commodity derivatives	—			—		(21,693		)	—			(21,693		)
Proceeds from sales of assets	—			—		1,931			—			1,931
Investments in unconsolidated entities	—			—		(2,149		)	—			(2,149		)
Distributions of capital from unconsolidated entities	—			—		3,156			—			3,156
Loan for facility under construction	—			—		(3,913		)	—			(3,913		)
Payments on loan for facility under construction	—			—		1,600			—			1,600
Loan to affiliate	—			—		(15,621		)	—			(15,621		)
Net cash used in investing activities	—			—		(201,095		)	(21,602		)	(222,697		)
FINANCING ACTIVITIES:
Proceeds from borrowings under revolving credit facilities	—			—		704,000			17,200			721,200
Payments on revolving credit facilities	—			—		(488,000		)	(10,200		)	(498,200		)
Payments on other long-term debt	—			—		(1,599		)	(30		)	(1,629		)
Debt issuance costs	54			—		(60		)	—			(6		)
Contributions from general partner	11			—		—			—			11
Contributions from noncontrolling interest owners	—			—		—			3,947			3,947
Distributions to partners	(73,097		)	—		—			—			(73,097		)
Distributions to noncontrolling interest owners	—			—		—			(9,057		)	(9,057		)
Net changes in advances with consolidated entities	86,638			—		(102,549		)	15,911			—
Other	—			—		(28		)	(70		)	(98		)
Net cash provided by financing activities	13,606			—		111,764			17,701			143,071
Net increase (decrease) in cash and cash equivalents	(6,422		)	—		3,885			4,740			2,203
Cash and cash equivalents, beginning of period	29,115			—		9,757			2,431			41,303
Cash and cash equivalents, end of period	$	22,693		$	—	$	13,642		$	7,171		$	43,506

(1) The parent and NGL Energy Finance Corp. are co-issuers of the 2019 Notes and 2021 Notes.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Condensed Consolidating Statement of Cash Flows

(U.S. Dollars in Thousands)

	Three Months Ended June 30, 2014
	NGL Energy
	Partners LP			NGL Energy		Guarantor			Non-Guarantor
	(Parent) (1)			Finance Corp. (1)		Subsidiaries			Subsidiaries			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	(19,540	)	$	—	$	26,650		$	2,096		$	9,206
INVESTING ACTIVITIES:
Purchases of long-lived assets	—			—		(48,608		)	(259		)	(48,867		)
Acquisitions of businesses, including acquired working capital, net of cash acquired	—			—		(15,619		)	(250		)	(15,869		)
Cash flows from commodity derivatives	—			—		(9,967		)	—			(9,967		)
Proceeds from sales of assets	—			—		989			—			989
Investments in unconsolidated entities	—			—		(4,094		)	—			(4,094		)
Net cash used in investing activities	—			—		(77,299		)	(509		)	(77,808		)
FINANCING ACTIVITIES:
Proceeds from borrowings under revolving credit facility	—			—		494,500			—			494,500
Payments on revolving credit facility	—			—		(681,000		)	—			(681,000		)
Payments on other long-term debt	—			—		(2,345		)	(2		)	(2,347		)
Debt issuance costs	(576		)	—		(1,618		)	—			(2,194		)
Contributions from general partner	352			—		—			—			352
Distributions to partners	(49,491		)	—		—			—			(49,491		)
Distributions to noncontrolling interest owners	—			—		—			(12		)	(12		)
Proceeds from sale of common units, net of offering costs	338,033			—		—			—			338,033
Net changes in advances with consolidated entities	(238,560		)	—		239,973			(1,413		)	—
Net cash provided by (used in) financing activities	49,758			—		49,510			(1,427		)	97,841
Net increase (decrease) in cash and cash equivalents	30,218			—		(1,139		)	160			29,239
Cash and cash equivalents, beginning of period	1,181			—		8,728			531			10,440
Cash and cash equivalents, end of period	$	31,399		$	—	$	7,589		$	691		$	39,679

(1) The parent and NGL Energy Finance Corp. are co-issuers of the 2021 Notes.