Condensed Consolidating Guarantor and Non-Guarantor Financial Information

6 Months Ended

12 Months Ended

Sep. 30, 2014

Mar. 31, 2014

Condensed Consolidating Guarantor and Non-Guarantor Financial Information

Condensed Consolidating Guarantor and Non-Guarantor Financial Information

Note 14 — Condensed Consolidating Guarantor and Non-Guarantor Financial Information

Certain of our wholly-owned subsidiaries have, jointly and severally, fully and unconditionally guaranteed the 2019 Notes and the 2021 Notes (described in Note 7). Pursuant to Rule 3-10 of Regulation S-X, we have presented in columnar format the condensed consolidating financial information for NGL Energy Partners LP, NGL Energy Finance Corp. (which, along with NGL Energy Partners LP, is a co-issuer of the 2019 Notes and 2021 Notes), the guarantor subsidiaries on a combined basis, and the non-guarantor subsidiaries on a combined basis in the tables below.

During the periods presented in the tables below, the status of certain subsidiaries changed, in that they either became guarantors of or ceased to be guarantors of the 2019 Notes and 2021 Notes. Such changes have been given retrospective application in the tables below.

There are no significant restrictions upon the ability of the parent or any of the guarantor subsidiaries to obtain funds from their respective subsidiaries by dividend or loan. None of the assets of the guarantor subsidiaries represent restricted net assets pursuant to Rule 4-08(e)(3) of Regulation S-X under the Securities Act.

For purposes of the tables below, (i) the condensed consolidating financial information is presented on a legal entity basis, not a business segment basis, (ii) investments in consolidated subsidiaries are accounted for as equity method investments, and (iii) contributions, distributions, and advances to or from consolidated entities are reported on a net basis within net changes in advances with consolidated entities in the condensed consolidating cash flow tables below.

NGL ENERGY PARTNERS LP

Condensed Consolidating Balance Sheet

(U.S. Dollars in Thousands)

	September 30, 2014
	NGL Energy Partners LP		NGL Energy			Guarantor			Non-Guarantor			Consolidating
	(Parent) (1)		Finance Corp.			Subsidiaries			Subsidiaries			Adjustments			Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	2,841	$	—		$	7,823		$	1,159		$	—		$	11,823
Accounts receivable - trade, net of allowance for doubtful accounts	—		—			1,419,442			13,675			—			1,433,117
Accounts receivable - affiliates	—		—			41,035			671			—			41,706
Inventories	—		—			937,814			3,775			—			941,589
Prepaid expenses and other current assets	—		—			155,332			1,486			—			156,818
Total current assets	2,841		—			2,561,446			20,766			—			2,585,053
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation	—		—			863,694			569,619			—			1,433,313
GOODWILL	—		—			1,139,374			31,116			—			1,170,490
INTANGIBLE ASSETS, net of accumulated amortization	1,307		17,619			778,960			40,202			—			838,088
INVESTMENTS IN UNCONSOLIDATED ENTITIES	—		—			214,234			268,410			—			482,644
NET INTERCOMPANY RECEIVABLES (PAYABLES)	248,893		849,526			(1,026,605		)	(71,814		)	—			—
INVESTMENTS IN CONSOLIDATED SUBSIDIARIES	1,743,573		—			10,470			—			(1,754,043		)	—
OTHER NONCURRENT ASSETS	—		—			40,035			2,056			—			42,091
Total assets	$	1,996,614	$	867,145		$	4,581,608		$	860,355		$	(1,754,043	)	$	6,551,679
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable - trade	$	—	$	—		$	1,333,780		$	11,244		$	—		$	1,345,024
Accounts payable - affiliates	—		—			85,237			70			—			85,307
Accrued expenses and other payables	554		19,021			186,226			12,681			—			218,482
Advance payments received from customers	—		—			105,597			508			—			106,105
Current maturities of long-term debt	—		—			5,004			58			—			5,062
Total current liabilities	554		19,021			1,715,844			24,561			—			1,759,980
LONG-TERM DEBT, net of current maturities	250,000		850,000			1,085,155			252,196			—			2,437,351
OTHER NONCURRENT LIABILITIES	—		—			35,160			4,358			—			39,518
EQUITY
Partners’ equity (deficit)	1,746,060		(1,876		)	1,745,450			579,312			(2,322,813		)	1,746,133
Accumulated other comprehensive loss	—		—			(1		)	(72		)	—			(73		)
Noncontrolling interests	—		—			—			—			568,770			568,770
Total equity (deficit)	1,746,060		(1,876		)	1,745,449			579,240			(1,754,043		)	2,314,830
Total liabilities and equity	$	1,996,614	$	867,145		$	4,581,608		$	860,355		$	(1,754,043	)	$	6,551,679

(1) The parent is a co-issuer of the 2019 Notes and 2021 Notes that are included in the NGL Energy Finance Corp. column.

NGL ENERGY PARTNERS LP

Condensed Consolidating Balance Sheet

(U.S. Dollars in Thousands)

	March 31, 2014
	NGL Energy
	Partners LP		NGL Energy			Guarantor			Non-Guarantor			Consolidating
	(Parent) (1)		Finance Corp.			Subsidiaries			Subsidiaries			Adjustments			Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,181	$	—		$	8,728		$	531		$	—		$	10,440
Accounts receivable - trade, net of allowance for doubtful accounts	—		—			887,789			13,115			—			900,904
Accounts receivable - affiliates	—		—			7,445			—			—			7,445
Inventories	—		—			306,434			3,726			—			310,160
Prepaid expenses and other current assets	—		—			80,294			56			—			80,350
Total current assets	1,181		—			1,290,690			17,428			—			1,309,299
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation	—		—			764,014			65,332			—			829,346
GOODWILL	—		—			1,105,008			1,998			—			1,107,006
INTANGIBLE ASSETS, net of accumulated amortization	1,169		11,552			700,603			1,632			—			714,956
INVESTMENTS IN UNCONSOLIDATED ENTITIES	—		—			189,821			—			—			189,821
NET INTERCOMPANY RECEIVABLES (PAYABLES)	327,281		437,714			(720,737		)	(44,258		)	—			—
INVESTMENTS IN CONSOLIDATED SUBSIDIARIES	1,447,502		—			17,673			—			(1,465,175		)	—
OTHER NONCURRENT ASSETS	—		—			16,674			121			—			16,795
Total assets	$	1,777,133	$	449,266		$	3,363,746		$	42,253		$	(1,465,175	)	$	4,167,223
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable - trade	$	—	$	—		$	726,252		$	13,959		$	—		$	740,211
Accounts payable - affiliates	—		—			73,703			3,143			—			76,846
Accrued expenses and other payables	554		14,266			124,923			1,947			—			141,690
Advance payments received from customers	—		—			29,891			74			—			29,965
Current maturities of long-term debt	—		—			7,058			22			—			7,080
Total current liabilities	554		14,266			961,827			19,145			—			995,792
LONG-TERM DEBT, net of current maturities	250,000		450,000			929,754			80			—			1,629,834
OTHER NONCURRENT LIABILITIES	—		—			9,663			81			—			9,744
EQUITY
Partners’ equity (deficit)	1,526,579		(15,000		)	1,462,691			22,994			(1,470,449		)	1,526,815
Accumulated other comprehensive loss	—		—			(189		)	(47		)	—			(236		)
Noncontrolling interests	—		—			—			—			5,274			5,274
Total equity (deficit)	1,526,579		(15,000		)	1,462,502			22,947			(1,465,175		)	1,531,853
Total liabilities and equity	$	1,777,133	$	449,266		$	3,363,746		$	42,253		$	(1,465,175	)	$	4,167,223

(1) The parent is a co-issuer of the 2021 Notes that are included in the NGL Energy Finance Corp. column.

NGL ENERGY PARTNERS LP

Condensed Consolidating Statement of Operations

(U.S. Dollars in Thousands)

	Three Months Ended September 30, 2014
	NGL Energy
	Partners LP			NGL Energy			Guarantor			Non-Guarantor			Consolidating
	(Parent) (1)			Finance Corp.			Subsidiaries			Subsidiaries			Adjustments			Consolidated
REVENUES	$	—		$	—		$	5,325,186		$	55,364		$	(24	)	$	5,380,526
COST OF SALES	—			—			5,161,935			17,554			(24		)	5,179,465
OPERATING COSTS AND EXPENSES:
Operating	—			—			84,300			17,253			—			101,553
General and administrative	—			—			36,360			5,279			—			41,639
Depreciation and amortization	—			—			38,999			11,100			—			50,099
Operating Income	—			—			3,592			4,178			—			7,770
OTHER INCOME (EXPENSE):
Earnings of unconsolidated entities	—			—			2,310			1,387			—			3,697
Interest expense	(4,067		)	(13,134		)	(9,956		)	(1,506		)	12			(28,651		)
Other, net	—			—			(524		)	(81		)	(12		)	(617		)
Income (Loss) Before Income Taxes	(4,067		)	(13,134		)	(4,578		)	3,978			—			(17,801		)
INCOME TAX (PROVISION) BENEFIT	—			—			1,951			(29		)	—			1,922
EQUITY IN NET INCOME (LOSS) OF CONSOLIDATED SUBSIDIARIES	(15,157		)	—			604			—			14,553			—
Net Income (Loss)	(19,224		)	(13,134		)	(2,023		)	3,949			14,553			(15,879		)
LESS: NET INCOME ALLOCATED TO GENERAL PARTNER													(11,056		)	(11,056		)
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS													(3,345		)	(3,345		)
NET INCOME (LOSS) ALLOCATED TO LIMITED PARTNERS	$	(19,224	)	$	(13,134	)	$	(2,023	)	$	3,949		$	152		$	(30,280	)

(1) The parent is a co-issuer of the 2019 Notes and 2021 Notes.

NGL ENERGY PARTNERS LP

Condensed Consolidating Statement of Operations

(U.S. Dollars in Thousands)

	Three Months Ended September 30, 2013
	NGL Energy
	Partners LP			Guarantor			Non-Guarantor			Consolidating
	(Parent)			Subsidiaries			Subsidiaries			Adjustments			Consolidated
REVENUES	$	—		$	1,546,226		$	47,735		$	(24	)	$	1,593,937
COST OF SALES	—			1,445,442			43,432			(24		)	1,488,850
OPERATING COSTS AND EXPENSES:
Operating	—			52,979			2,790			—			55,769
General and administrative	—			14,089			223			—			14,312
Depreciation and amortization	—			23,970			1,091			—			25,061
Operating Income	—			9,746			199			—			9,945
OTHER INCOME (EXPENSE):
Interest expense	(4,179		)	(6,880		)	(13		)	12			(11,060		)
Other, net	—			528			(97		)	(12		)	419
Income (Loss) Before Income Taxes	(4,179		)	3,394			89			—			(696		)
INCOME TAX PROVISION	—			(236		)	—			—			(236		)
EQUITY IN NET INCOME OF CONSOLIDATED SUBSIDIARIES	3,238			80			—			(3,318		)	—
Net Income (Loss)	(941		)	3,238			89			(3,318		)	(932		)
LESS: NET INCOME ALLOCATED TO GENERAL PARTNER										(2,451		)	(2,451		)
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS										(9		)	(9		)
NET INCOME (LOSS) ALLOCATED TO LIMITED PARTNERS	$	(941	)	$	3,238		$	89		$	(5,778	)	$	(3,392	)

NGL ENERGY PARTNERS LP

Condensed Consolidating Statement of Operations

(U.S. Dollars in Thousands)

	Six Months Ended September 30, 2014
	NGL Energy
	Partners LP			NGL Energy			Guarantor			Non-Guarantor			Consolidating
	(Parent) (1)			Finance Corp.			Subsidiaries			Subsidiaries			Adjustments			Consolidated
REVENUES	$	—		$	—		$	8,952,772		$	76,421		$	(53	)	$	9,029,140
COST OF SALES	—			—			8,676,881			36,690			(53		)	8,713,518
OPERATING COSTS AND EXPENSES:
Operating	—			—			150,919			18,502			—			169,421
General and administrative	—			—			64,124			5,388			—			69,512
Depreciation and amortization	—			—			77,545			11,929			—			89,474
Operating Income (Loss)	—			—			(16,697		)	3,912			—			(12,785		)
OTHER INCOME (EXPENSE):
Earnings of unconsolidated entities	—			—			4,875			1,387			—			6,262
Interest expense	(8,313		)	(21,280		)	(18,058		)	(1,517		)	23			(49,145		)
Other, net	—			—			(1,056		)	71			(23		)	(1,008		)
Income (Loss) Before Income Taxes	(8,313		)	(21,280		)	(30,936		)	3,853			—			(56,676		)
INCOME TAX (PROVISION) BENEFIT	—			—			993			(106		)	—			887
EQUITY IN NET INCOME (LOSS) OF CONSOLIDATED SUBSIDIARIES	(50,886		)	—			337			—			50,549			—
Net Income (Loss)	(59,199		)	(21,280		)	(29,606		)	3,747			50,549			(55,789		)
LESS: NET INCOME ALLOCATED TO GENERAL PARTNER													(20,437		)	(20,437		)
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS													(3,410		)	(3,410		)
NET INCOME (LOSS) ALLOCATED TO LIMITED PARTNERS	$	(59,199	)	$	(21,280	)	$	(29,606	)	$	3,747		$	26,702		$	(79,636	)

(1) The parent is a co-issuer of the 2019 Notes and 2021 Notes.

NGL ENERGY PARTNERS LP

Condensed Consolidating Statement of Operations

(U.S. Dollars in Thousands)

	Six Months Ended September 30, 2013
	NGL Energy
	Partners LP			Guarantor			Non-Guarantor			Consolidating
	(Parent)			Subsidiaries			Subsidiaries			Adjustments			Consolidated
REVENUES	$	—		$	2,914,531		$	65,421		$	(58	)	$	2,979,894
COST OF SALES	—			2,735,890			56,094			(58		)	2,791,926
OPERATING COSTS AND EXPENSES:
Operating	—			99,710			5,104			—			104,814
General and administrative	—			32,297			469			—			32,766
Depreciation and amortization	—			46,000			1,785			—			47,785
Operating Income	—			634			1,969			—			2,603
OTHER INCOME (EXPENSE):
Interest expense	(8,368		)	(13,309		)	(28		)	23			(21,682		)
Other, net	—			627			(135		)	(23		)	469
Income (Loss) Before Income Taxes	(8,368		)	(12,048		)	1,806			—			(18,610		)
INCOME TAX BENEFIT	—			170			—			—			170
EQUITY IN NET INCOME (LOSS) OF CONSOLIDATED SUBSIDIARIES	(10,206		)	1,672			—			8,534			—
Net Income (Loss)	(18,574		)	(10,206		)	1,806			8,534			(18,440		)
LESS: NET INCOME ALLOCATED TO GENERAL PARTNER										(4,139		)	(4,139		)
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS										(134		)	(134		)
NET INCOME (LOSS) ALLOCATED TO LIMITED PARTNERS	$	(18,574	)	$	(10,206	)	$	1,806		$	4,261		$	(22,713	)

NGL ENERGY PARTNERS LP

Condensed Consolidating Statements of Comprehensive Income (Loss)

(U.S. Dollars in Thousands)

	Three Months Ended September 30, 2014
	NGL Energy
	Partners LP			NGL Energy			Guarantor			Non-Guarantor			Consolidating
	(Parent) (1)			Finance Corp.			Subsidiaries			Subsidiaries			Adjustments		Consolidated
Net income (loss)	$	(19,224	)	$	(13,134	)	$	(2,023	)	$	3,949		$	14,553	$	(15,879	)
Other comprehensive income (loss)	—			—			4			(26		)	—		(22		)
Comprehensive income (loss)	$	(19,224	)	$	(13,134	)	$	(2,019	)	$	3,923		$	14,553	$	(15,901	)

(1) The parent is a co-issuer of the 2019 Notes and 2021 Notes.

	Three Months Ended September 30, 2013
	NGL Energy
	Partners LP			Guarantor		Non-Guarantor			Consolidating
	(Parent)			Subsidiaries		Subsidiaries			Adjustments			Consolidated
Net income (loss)	$	(941	)	$	3,238	$	89		$	(3,318	)	$	(932	)
Other comprehensive loss	—			—		(5		)	—			(5		)
Comprehensive income (loss)	$	(941	)	$	3,238	$	84		$	(3,318	)	$	(937	)

NGL ENERGY PARTNERS LP

Condensed Consolidating Statements of Comprehensive Income (Loss)

(U.S. Dollars in Thousands)

	Six Months Ended September 30, 2014
	NGL Energy
	Partners LP			NGL Energy			Guarantor			Non-Guarantor			Consolidating
	(Parent) (1)			Finance Corp.			Subsidiaries			Subsidiaries			Adjustments		Consolidated
Net income (loss)	$	(59,199	)	$	(21,280	)	$	(29,606	)	$	3,747		$	50,549	$	(55,789	)
Other comprehensive income (loss)	—			—			189			(26		)	—		163
Comprehensive income (loss)	$	(59,199	)	$	(21,280	)	$	(29,417	)	$	3,721		$	50,549	$	(55,626	)

(1) The parent is a co-issuer of the 2019 Notes and 2021 Notes.

	Six Months Ended September 30, 2013
	NGL Energy
	Partners LP			Guarantor			Non-Guarantor			Consolidating
	(Parent)			Subsidiaries			Subsidiaries			Adjustments		Consolidated
Net income (loss)	$	(18,574	)	$	(10,206	)	$	1,806		$	8,534	$	(18,440	)
Other comprehensive loss	—			—			(30		)	—		(30		)
Comprehensive income (loss)	$	(18,574	)	$	(10,206	)	$	1,776		$	8,534	$	(18,470	)

NGL ENERGY PARTNERS LP

Condensed Consolidating Statement of Cash Flows

(U.S. Dollars in Thousands)

	Six Months Ended September 30, 2014
	NGL Energy
	Partners LP			NGL Energy			Guarantor			Non-Guarantor
	(Parent) (1)			Finance Corp.			Subsidiaries			Subsidiaries			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	(8,180	)	$	(15,383	)	$	(56,019	)	$	17,947		$	(61,635	)
INVESTING ACTIVITIES:
Purchases of long-lived assets	—			—			(81,710		)	(1,141		)	(82,851		)
Acquisitions of businesses, including acquired working capital, net of cash acquired	—			—			(657,514		)	(1,250		)	(658,764		)
Cash flows from commodity derivatives	—			—			4,327			—			4,327
Proceeds from sales of assets	—			—			8,741			—			8,741
Investments in unconsolidated entities	—			—			(6,106		)	(20,284		)	(26,390		)
Distributions of capital from unconsolidated entities	—			—			2,774			1,875			4,649
Net cash used in investing activities	—			—			(729,488		)	(20,800		)	(750,288		)
FINANCING ACTIVITIES:
Proceeds from borrowings under revolving credit facilities	—			—			1,923,500			56,000			1,979,500
Payments on revolving credit facilities	—			—			(1,766,000		)	(38,000		)	(1,804,000		)
Issuance of notes	—			400,000			—			—			400,000
Payments on other long-term debt	—			—			(4,173		)	(2		)	(4,175		)
Debt issuance costs	(269		)	(7,209		)	(1,720		)	—			(9,198		)
Contributions	395			—			—			—			395
Distributions to owners	(111,008		)	—			—			—			(111,008		)
Distributions to noncontrolling interest partners	—			—			—			(8,654		)	(8,654		)
Proceeds from sale of common units, net of offering costs	370,446			—			—			—			370,446
Net changes in advances with consolidated entities	(249,724		)	(377,408		)	632,995			(5,863		)	—
Net cash provided by financing activities	9,840			15,383			784,602			3,481			813,306
Net increase (decrease) in cash and cash equivalents	1,660			—			(905		)	628			1,383
Cash and cash equivalents, beginning of period	1,181			—			8,728			531			10,440
Cash and cash equivalents, end of period	$	2,841		$	—		$	7,823		$	1,159		$	11,823

(1) The parent is a co-issuer of the 2019 Notes and 2021 Notes.

NGL ENERGY PARTNERS LP

Condensed Consolidating Statement of Cash Flows

(U.S. Dollars in Thousands)

	Six Months Ended September 30, 2013
	NGL Energy
	Partners LP			Guarantor			Non-Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	(8,312	)	$	(44,607	)	$	4,175		$	(48,744	)
INVESTING ACTIVITIES:
Purchases of long-lived assets	—			(37,180		)	(30,219		)	(67,399		)
Acquisitions of businesses, including acquired working capital, net of cash acquired	(334,085		)	(56,237		)	(2,283		)	(392,605		)
Cash flows from commodity derivatives	—			(19,074		)	—			(19,074		)
Proceeds from sales of assets	—			2,223			1			2,224
Net cash used in investing activities	(334,085		)	(110,268		)	(32,501		)	(476,854		)
FINANCING ACTIVITIES:
Proceeds from borrowings under revolving credit facility	—			1,061,500			—			1,061,500
Payments on revolving credit facility	—			(893,000		)	—			(893,000		)
Proceeds from borrowings on other long-term debt	—			780			100			880
Payments on other long-term debt	—			(4,499		)	(8		)	(4,507		)
Debt issuance costs	(133		)	(2,085		)	—			(2,218		)
Contributions	504			—			1,940			2,444
Distributions to owners	(60,258		)	—			(365		)	(60,623		)
Proceeds from sale of common units, net of offering costs	415,089			—			—			415,089
Net changes in advances with consolidated entities	(11,459		)	(15,123		)	26,582			—
Net cash provided by financing activities	343,743			147,573			28,249			519,565
Net increase (decrease) in cash and cash equivalents	1,346			(7,302		)	(77		)	(6,033		)
Cash and cash equivalents, beginning of period	—			11,206			355			11,561
Cash and cash equivalents, end of period	$	1,346		$	3,904		$	278		$	5,528

Note 17 — Condensed Consolidating Guarantor and Non-Guarantor Financial Information

Certain of our wholly-owned subsidiaries have, jointly and severally, fully and unconditionally guaranteed the Unsecured Notes (described in Note 8). Pursuant to Rule 3-10 of Regulation S-X, we have presented in columnar format the condensed consolidating financial information for NGL Energy Partners LP, NGL Energy Finance Corp. (which, along with NGL Energy Partners LP, is a co-issuer of the Unsecured Notes), the guarantor subsidiaries on a combined basis, and the non-guarantor subsidiaries on a combined basis in the tables below.

During the periods presented in the tables below, the status of certain subsidiaries changed, in that they either became guarantors of or ceased to be guarantors of the Unsecured Notes. Such changes have been given retrospective application in the tables below.

There are no significant restrictions upon the ability of the parent or any of the guarantor subsidiaries to obtain funds from their respective subsidiaries by dividend or loan. None of the assets of the guarantor subsidiaries represent restricted net assets pursuant to Rule 4-08(e)(3) of Regulation S-X under the Securities Act.

For purposes of the tables below, (i) the condensed consolidating financial information is presented on a legal entity basis, not a business segment basis, (ii) investments in consolidated subsidiaries are accounted for as equity method investments, and (iii) contributions, distributions, and advances to or from consolidated entities are reported on a net basis within net changes in advances with consolidated entities in the condensed consolidating cash flow tables below.

NGL ENERGY PARTNERS LP

Condensed Consolidating Balance Sheet

(U.S. Dollars in Thousands)

	March 31, 2014
	NGL Energy
	Partners LP		NGL Energy			Guarantor			Non-Guarantor			Consolidating
	(Parent) (1)		Finance Corp.			Subsidiaries			Subsidiaries			Adjustments			Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,181	$	—		$	8,728		$	531		$	—		$	10,440
Accounts receivable - trade, net of allowance for doubtful accounts	—		—			887,789			13,115			—			900,904
Accounts receivable - affiliates	—		—			7,445			—			—			7,445
Inventories	—		—			306,434			3,726			—			310,160
Prepaid expenses and other current assets	—		—			80,294			56			—			80,350
Total current assets	1,181		—			1,290,690			17,428			—			1,309,299
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation	—		—			764,014			65,332			—			829,346
GOODWILL	—		—			1,105,008			1,998			—			1,107,006
INTANGIBLE ASSETS, net of accumulated amortization	1,169		11,552			700,603			1,632			—			714,956
INVESTMENTS IN UNCONSOLIDATED ENTITIES	—		—			189,821			—			—			189,821
NET INTERCOMPANY RECEIVABLES (PAYABLES)	327,281		437,714			(720,737		)	(44,258		)	—			—
INVESTMENTS IN CONSOLIDATED SUBSIDIARIES	1,447,502		—			17,673			—			(1,465,175		)	—
OTHER NONCURRENT ASSETS	—		—			16,674			121			—			16,795
Total assets	$	1,777,133	$	449,266		$	3,363,746		$	42,253		$	(1,465,175	)	$	4,167,223
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable - trade	$	—	$	—		$	726,252		$	13,959		$	—		$	740,211
Accounts payable - affiliates	—		—			73,703			3,143			—			76,846
Accrued expenses and other payables	554		14,266			124,923			1,947			—			141,690
Advance payments received from customers	—		—			29,891			74			—			29,965
Current maturities of long-term debt	—		—			7,058			22			—			7,080
Total current liabilities	554		14,266			961,827			19,145			—			995,792
LONG-TERM DEBT, net of current maturities	250,000		450,000			929,754			80			—			1,629,834
OTHER NONCURRENT LIABILITIES	—		—			9,663			81			—			9,744
EQUITY
Partners’ equity (deficit)	1,526,579		(15,000		)	1,462,691			22,994			(1,470,449		)	1,526,815
Accumulated other comprehensive loss	—		—			(189		)	(47		)	—			(236		)
Noncontrolling interests	—		—			—			—			5,274			5,274
Total equity (deficit)	1,526,579		(15,000		)	1,462,502			22,947			(1,465,175		)	1,531,853
Total liabilities and equity	$	1,777,133	$	449,266		$	3,363,746		$	42,253		$	(1,465,175	)	$	4,167,223

(1)   The parent is a co-issuer of the $450.0 million 6.875% Unsecured Notes that are included in the NGL Energy Finance Corp. column.

NGL ENERGY PARTNERS LP

Condensed Consolidating Balance Sheet

(U.S. Dollars in Thousands)

	March 31, 2013
	NGL Energy
	Partners LP		Guarantor			Non-Guarantor			Consolidating
	(Parent)		Subsidiaries			Subsidiaries			Adjustments			Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	11,206		$	355		$	—		$	11,561
Accounts receivable - trade, net of allowance for doubtful accounts	—		561,560			1,197			—			562,757
Accounts receivable - affiliates	—		22,883			—			—			22,883
Inventories	—		126,024			871			—			126,895
Prepaid expenses and other current assets	—		37,784			107			—			37,891
Total current assets	—		759,457			2,530			—			761,987
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation	—		497,743			28,694			—			526,437
GOODWILL	—		553,222			1,998			—			555,220
INTANGIBLE ASSETS, net of accumulated amortization	717		439,365			1,350			—			441,432
NET INTERCOMPANY RECEIVABLES (PAYABLES)	237,736		(233,294		)	(4,442		)	—			—
INVESTMENTS IN CONSOLIDATED SUBSIDIARIES	895,779		20,371			—			(916,150		)	—
OTHER NONCURRENT ASSETS	—		6,542			—			—			6,542
Total assets	$	1,134,232	$	2,043,406		$	30,130		$	(916,150	)	$	2,291,618
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable - trade	$	—	$	534,164		$	1,891		$	—		$	536,055
Accounts payable - affiliates	—		6,900			—			—			6,900
Accrued expenses and other payables	554		83,001			2,051			—			85,606
Advance payments received from customers	—		22,364			8			—			22,372
Current maturities of long-term debt	—		8,610			16			—			8,626
Total current liabilities	554		655,039			3,966			—			659,559
LONG-TERM DEBT, net of current maturities	250,000		490,433			3			—			740,436
OTHER NONCURRENT LIABILITIES	—		2,155			50			—			2,205
EQUITY
Partners’ equity	883,678		895,779			26,087			(921,890		)	883,654
Accumulated other comprehensive income	—		—			24			—			24
Noncontrolling interests	—		—			—			5,740			5,740
Total equity	883,678		895,779			26,111			(916,150		)	889,418
Total liabilities and equity	$	1,134,232	$	2,043,406		$	30,130		$	(916,150	)	$	2,291,618

NGL ENERGY PARTNERS LP

Condensed Consolidating Statement of Operations

(U.S. Dollars in Thousands)

	Year Ended March 31, 2014
	NGL Energy
	Partners LP			NGL Energy			Guarantor			Non-Guarantor			Consolidating
	(Parent) (1)			Finance Corp.			Subsidiaries			Subsidiaries			Adjustments			Consolidated
REVENUES	$	—		$	—		$	9,560,124		$	139,519		$	(369	)	$	9,699,274
COST OF SALES	—			—			9,011,011			122,057			(369		)	9,132,699
OPERATING COSTS AND EXPENSES:
Operating	—			—			253,214			6,182			—			259,396
General and administrative	—			—			77,756			2,104			—			79,860
Depreciation and amortization	—			—			117,573			3,181			—			120,754
Operating Income	—			—			100,570			5,995			—			106,565
OTHER INCOME (EXPENSE):
Earnings from unconsolidated entities	—			—			1,898			—			—			1,898
Interest expense	(16,818		)	(15,000		)	(27,031		)	(51		)	46			(58,854		)
Other, net	—			—			202			(70		)	(46		)	86
Income (Loss) Before Income Taxes	(16,818		)	(15,000		)	75,639			5,874			—			49,695
INCOME TAX PROVISION	—			—			(937		)	—			—			(937		)
EQUITY IN NET INCOME OF CONSOLIDATED SUBSIDIARIES	64,473			—			4,771			—			(69,244		)	—
Net Income (Loss)	47,655			(15,000		)	79,473			5,874			(69,244		)	48,758
NET INCOME ALLOCATED TO GENERAL PARTNER													(14,148		)	(14,148		)
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS													(1,103		)	(1,103		)
NET INCOME (LOSS) ALLOCATED TO LIMITED PARTNERS	$	47,655		$	(15,000	)	$	79,473		$	5,874		$	(84,495	)	$	33,507

(1) The parent is a co-issuer of the $450.0 million 6.875% Unsecured Notes that are included in the NGL Energy Finance Corp. column.

NGL ENERGY PARTNERS LP

Condensed Consolidating Statement of Operations

(U.S. Dollars in Thousands)

	Year Ended March 31, 2013
	NGL Energy
	Partners LP			Guarantor			Non-Guarantor			Consolidating
	(Parent)			Subsidiaries			Subsidiaries			Adjustments			Consolidated
REVENUES	$	—		$	4,409,198		$	8,878		$	(309	)	$	4,417,767
COST OF SALES	—			4,038,251			1,168			(309		)	4,039,110
OPERATING COSTS AND EXPENSES:
Operating	—			164,944			4,855			—			169,799
General and administrative	—			52,461			237			—			52,698
Depreciation and amortization	—			66,916			1,937			—			68,853
Operating Income	—			86,626			681			—			87,307
OTHER INCOME (EXPENSE):
Interest expense	(13,041		)	(19,951		)	(48		)	46			(32,994		)
Loss on early extinguishment of debt	—			(5,769		)	—			—			(5,769		)
Other, net	—			1,666			(99		)	(46		)	1,521
Income (Loss) Before Income Taxes	(13,041		)	62,572			534			—			50,065
INCOME TAX PROVISION	—			(1,875		)	—			—			(1,875		)
EQUITY IN NET INCOME OF CONSOLIDATED SUBSIDIARIES	60,981			284			—			(61,265		)	—
Net Income	47,940			60,981			534			(61,265		)	48,190
NET INCOME ALLOCATED TO GENERAL PARTNER										(2,917		)	(2,917		)
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS										(250		)	(250		)
NET INCOME ALLOCATED TO LIMITED PARTNERS	$	47,940		$	60,981		$	534		$	(64,432	)	$	45,023

NGL ENERGY PARTNERS LP

Condensed Consolidating Statement of Operations

(U.S. Dollars in Thousands)

	Year Ended March 31, 2012
	NGL Energy
	Partners LP		Guarantor			Non-Guarantor			Consolidating
	(Parent)		Subsidiaries			Subsidiaries			Adjustments			Consolidated
REVENUES	$	—	$	1,310,473		$	225		$	(225	)	$	1,310,473
COST OF SALES	—		1,217,248			—			(225		)	1,217,023
OPERATING COSTS AND EXPENSES:
Operating	—		47,162			138			—			47,300
General and administrative	—		15,823			186			—			16,009
Depreciation and amortization	—		14,964			147			—			15,111
Operating Income (Loss)	—		15,276			(246		)	—			15,030
OTHER INCOME (EXPENSE):
Interest expense	—		(7,619		)	(46		)	45			(7,620		)
Other, net	—		1,100			—			(45		)	1,055
Income (Loss) Before Income Taxes	—		8,757			(292		)	—			8,465
INCOME TAX PROVISION	—		(601		)	—			—			(601		)
EQUITY IN NET INCOME (LOSS) OF CONSOLIDATED SUBSIDIARIES	7,876		(280		)	—			(7,596		)	—
Net Income (Loss)	7,876		7,876			(292		)	(7,596		)	7,864
NET INCOME ALLOCATED TO GENERAL PARTNER									(8		)	(8		)
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS									12			12
NET INCOME (LOSS) ALLOCATED TO LIMITED PARTNERS	$	7,876	$	7,876		$	(292	)	$	(7,592	)	$	7,868

NGL ENERGY PARTNERS LP

Condensed Consolidating Statements of Comprehensive Income (Loss)

(U.S. Dollars in Thousands)

	Year Ended March 31, 2014
	NGL Energy
	Partners LP		NGL Energy			Guarantor			Non-Guarantor			Consolidating
	(Parent) (1)		Finance Corp.			Subsidiaries			Subsidiaries			Adjustments			Consolidated
Net income (loss)	$	47,655	$	(15,000	)	$	79,473		$	5,874		$	(69,244	)	$	48,758
Other comprehensive loss, net of tax	—		—			(189		)	(71		)	—			(260		)
Comprehensive income (loss)	$	47,655	$	(15,000	)	$	79,284		$	5,803		$	(69,244	)	$	48,498

(1) The parent is a co-issuer of the $450.0 million 6.875% Unsecured Notes that are included in the NGL Energy Finance Corp. column.

	Year Ended March 31, 2013
	NGL Energy
	Partners LP		Guarantor		Non-Guarantor			Consolidating
	(Parent)		Subsidiaries		Subsidiaries			Adjustments			Consolidated
Net income	$	47,940	$	60,981	$	534		$	(61,265	)	$	48,190
Other comprehensive loss, net of tax	—		—		(7		)	—			(7		)
Comprehensive income	$	47,940	$	60,981	$	527		$	(61,265	)	$	48,183

	Year Ended March 31, 2012
	NGL Energy
	Partners LP		Guarantor		Non-Guarantor			Consolidating
	(Parent)		Subsidiaries		Subsidiaries			Adjustments			Consolidated
Net income (loss)	$	7,876	$	7,876	$	(292	)	$	(7,596	)	$	7,864
Other comprehensive loss, net of tax	—		—		(25		)	—			(25		)
Comprehensive income (loss)	$	7,876	$	7,876	$	(317	)	$	(7,596	)	$	7,839

NGL ENERGY PARTNERS LP

Condensed Consolidating Statement of Cash Flows

(U.S. Dollars in Thousands)

	Year Ended March 31, 2014
	NGL Energy
	Partners LP			NGL Energy			Guarantor			Non-Guarantor
	(Parent) (1)			Finance Corp.			Subsidiaries			Subsidiaries			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	(16,625	)	$	—		$	99,754		$	2,107		$	85,236
INVESTING ACTIVITIES:
Purchases of long-lived assets	—			—			(118,455		)	(46,693		)	(165,148		)
Acquisitions of businesses, including acquired working capital, net of cash acquired	(334,154		)	—			(932,373		)	(2,283		)	(1,268,810		)
Cash flows from commodity derivatives	—			—			(35,956		)	—			(35,956		)
Proceeds from sales of assets	—			—			12,884			11,776			24,660
Investments in unconsolidated entities	—			—			(11,515		)	—			(11,515		)
Distributions of capital from unconsolidated entities	—			—			1,591			—			1,591
Other	—			—			540			(735		)	(195		)
Net cash used in investing activities	(334,154		)	—			(1,083,284		)	(37,935		)	(1,455,373		)
FINANCING ACTIVITIES:
Proceeds from borrowings under revolving credit facilities	—			—			2,545,500			—			2,545,500
Payments on revolving credit facilities	—			—			(2,101,000		)	—			(2,101,000		)
Issuances of notes	—			450,000			—			—			450,000
Proceeds from borrowings on other long-term debt	—			—			780			100			880
Payments on other long-term debt	—			—			(8,802		)	(17		)	(8,819		)
Debt issuance costs	(645		)	(12,286		)	(11,664		)	—			(24,595		)
Contributions	765			—			—			2,060			2,825
Distributions	(145,090		)	—			—			(840		)	(145,930		)
Proceeds from sale of common units, net of offering costs	650,155			—			—			—			650,155
Net changes in advances with consolidated entities	(153,225		)	(437,714		)	556,238			34,701			—
Net cash provided by financing activities	351,960			—			981,052			36,004			1,369,016
Net increase (decrease) in cash and cash equivalents	1,181			—			(2,478		)	176			(1,121		)
Cash and cash equivalents, beginning of period	—			—			11,206			355			11,561
Cash and cash equivalents, end of period	$	1,181		$	—		$	8,728		$	531		$	10,440

(1) The parent is a co-issuer of the $450.0 million 6.875% Unsecured Notes that are included in the NGL Energy Finance Corp. column.

NGL ENERGY PARTNERS LP

Condensed Consolidating Statement of Cash Flows

(U.S. Dollars in Thousands)

	Year Ended March 31, 2013
	NGL Energy
	Partners LP			Guarantor			Non-Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	(12,428	)	$	140,794		$	4,268		$	132,634
INVESTING ACTIVITIES:
Purchases of long-lived assets	—			(59,903		)	(12,572		)	(72,475		)
Acquisitions of businesses, including acquired working capital, net of cash acquired	(452,087		)	(38,718		)	—			(490,805		)
Cash flows from commodity derivatives	—			11,579			—			11,579
Proceeds from sales of assets	—			5,080			—			5,080
Net cash used in investing activities	(452,087		)	(81,962		)	(12,572		)	(546,621		)
FINANCING ACTIVITIES:
Proceeds from borrowings under revolving credit facilities	—			1,227,975			—			1,227,975
Payments on revolving credit facilities	—			(964,475		)	—			(964,475		)
Issuance of notes	250,000			—			—			250,000
Proceeds from borrowings on other long-term debt	—			634			19			653
Payments on other long-term debt	—			(4,837		)	—			(4,837		)
Debt issuance costs	(777		)	(19,412		)	—			(20,189		)
Contributions	510			—			403			913
Distributions	(71,608		)	—			(74		)	(71,682		)
Proceeds from sale of common units, net of offering costs	(642		)	—			—			(642		)
Net changes in advances with consolidated entities	286,991			(295,105		)	8,114			—
Net cash provided by (used in) financing activities	464,474			(55,220		)	8,462			417,716
Net increase (decrease) in cash and cash equivalents	(41		)	3,612			158			3,729
Cash and cash equivalents, beginning of period	41			7,594			197			7,832
Cash and cash equivalents, end of period	$	—		$	11,206		$	355		$	11,561

NGL ENERGY PARTNERS LP

Condensed Consolidating Statement of Cash Flows

(U.S. Dollars in Thousands)

	Year Ended March 31, 2012
	NGL Energy
	Partners LP			Guarantor			Non-Guarantor
	(Parent)			Subsidiaries			Subsidiaries			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	—		$	90,477		$	(148	)	$	90,329
INVESTING ACTIVITIES:
Purchases of long-lived assets	—			(6,667		)	(877		)	(7,544		)
Acquisitions of businesses, including acquired working capital, net of cash acquired	(291,097		)	(6,304		)	—			(297,401		)
Cash flows from commodity derivatives	—			6,464			—			6,464
Proceeds from sales of assets	—			1,238			—			1,238
Other	—			346			—			346
Net cash used in investing activities	(291,097		)	(4,923		)	(877		)	(296,897		)
FINANCING ACTIVITIES:
Proceeds from borrowings under revolving credit facilities	—			478,900			—			478,900
Payments on revolving credit facilities	—			(329,900		)	—			(329,900		)
Payments on other long-term debt	—			(1,278		)	—			(1,278		)
Debt issuance costs	—			(2,380		)	—			(2,380		)
Contributions	—			—			440			440
Distributions	(19,060		)	—			—			(19,060		)
Proceeds from sale of common units, net of offering costs	74,759			—			—			74,759
Repurchase of common units	(3,418		)	—			—			(3,418		)
Net changes in advances with consolidated entities	238,816			(239,476		)	660			—
Net cash provided by (used in) financing activities	291,097			(94,134		)	1,100			198,063
Net increase (decrease) in cash and cash equivalents	—			(8,580		)	75			(8,505		)
Cash and cash equivalents, beginning of period	41			16,174			122			16,337
Cash and cash equivalents, end of period	$	41		$	7,594		$	197		$	7,832