Transactions with Affiliates

12 Months Ended

Mar. 31, 2022

The following table summarizes our related party transactions for the periods indicated:


	Year Ended March 31,
	2022		2021		2020
	(in thousands)
Sales to entities affiliated with management	$	—	$	18,402	$	8,367
Purchases from entities affiliated with management	$	1,489	$	1,239	$	3,799
Sales to equity method investees	$	—	$	—	$	203
Purchases from equity method investees	$	1,091	$	3,249	$	2,120
Sales to WPX (1)			$	39,129	$	48,222
Purchases from WPX (1)			$	216,487	$	313,578
Sales to SemGroup (2)					$	458

(1) As previously disclosed, a member of the board of directors of our general partner was an executive officer of WPX Energy, Inc. (“WPX”) and has subsequently retired. Therefore, we are no longer classifying transactions with WPX as a related party. The prior year amounts relate to purchases and sales of crude oil with WPX as well as the treatment and disposal of produced water and solids received from WPX.

(2) As previously disclosed, SemGroup Corporation (“SemGroup”), who holds ownership interests in our general partner, was acquired by Energy Transfer LP (“ET”) in December 2019. During the three months ended December 31, 2019, we reevaluated our related parties and determined that SemGroup/ET no longer meet the criteria to be disclosed as a related party. Therefore, information for the six months ended September 30, 2019 has been retained but we have not disclosed any information related to transactions subsequent to September 30, 2019.

Accounts receivable from affiliates consist of the following at the dates indicated:


	March 31,
	2022		2021
	(in thousands)
NGL Energy Holdings LLC	$	8,483	$	8,245
Equity method investees	107		462
Entities affiliated with management	1		728
Total	$	8,591	$	9,435

Accounts payable to affiliates consist of the following at the dates indicated:


	March 31,
	2022		2021
	(in thousands)
Equity method investees	$	27	$	107
Entities affiliated with management	46		12
Total	$	73	$	119

Other Related Party Transactions

Guarantee of Outstanding Loan for KAIR2014 LLC (“KAIR2014”)

In connection with the purchase of our 50% interest in an aircraft company, KAIR2014, discussed below, we executed a joint and several guarantee for the benefit of the lender for KAIR2014’s outstanding loan. The other owner of KAIR2014, our Chief Executive Officer, H. Michael Krimbill, is a party to a similar guarantee. This guarantee obligates us for the payment and performance of KAIR2014 with respect to the repayment of the loan. As of March 31, 2022, the outstanding balance of the loan is approximately $2.5 million. Payments are made monthly, reducing the outstanding balance, and the loan matures in September 2023. As the guarantee is joint and several, we could be liable for the entire outstanding balance of the loan. The loan is collateralized by the airplane owned by KAIR2014 and in the event of a default, the lender could seek payment in full from us. As of March 31, 2022, no accrual has been recorded related to this guarantee.

During the three months ended June 30, 2019, we purchased a 50% interest in KAIR2014 for $0.9 million in cash and accounted for our interest using the equity method of accounting (see Note 2). The remaining interest in KAIR2014 is owned by our Chief Executive Officer, H. Michael Krimbill.

2026 Senior Secured Notes and ABL Facility

To complete the issuance of the 2026 Senior Secured Notes and the ABL Facility (see Note 7), we were required to receive the consent of the holders of our Class D Preferred Units, who are represented on the board of directors of our general partner. For their consent, we paid to the holders of the Class D Preferred Units $40.0 million.

Acquisition of Interest in NGL Energy Holdings LLC

During the year ended March 31, 2020, we purchased, in three transactions, a 2.97% interest in our general partner, NGL Energy Holdings LLC, for $3.8 million in cash and accounted for this as a deduction within limited partners’ equity in our consolidated balance sheet. We also purchased a 5.73% interest in our general partner, NGL Energy Holdings LLC, for $11.5 million in cash and accounted for this as a deduction within limited partners’ equity in our consolidated balance sheet. This interest was purchased from a fund controlled by The Energy & Minerals Group, which is represented on the board of directors of our general partner.