NGL Energy Partners LP

Good morning, ladies and gentlemen, and welcome to the first quarter of fiscal year 2020 NGL Energy Partners LP earnings conference call. At this time, all participants are in a liaison-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. If anyone should require assistance during the conference, please press star, then zero on your touchtone's telephone. As a reminder, this conference call is being recorded. I would now like to turn the conference over to our host, Craig Karlovich, CFO. You may begin.

Thank you and welcome, everybody. Reminder, this conference call includes forward-looking statements and information. Words such as anticipate, project, expect, plan, goal, forecast, intend, could, believe, may, and similar expressions and statements are intended to identify forward-looking statements. While NGL Energy Partners believes that its expectations are based on reasonable assumptions, there can be no assurance that such expectations will prove to be correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations included in the forward-looking statements. These factors include prices and market demand for natural gas, natural gas liquids, refined products, and crude oil, level of production of crude oil, natural gas liquids, and natural gas. the effective weather conditions on demand for oil, natural gas, and natural gas liquids, and the ability to successfully identify and consummate growth opportunities and strategic acquisitions at costs that are accreted to financial results and to successfully integrate and operate assets and businesses that are built or acquired. Other factors that could impact these forward-looking statements are described in risk factors in the partnership's annual report on Form 10-K, quarterly reports on Form 10-Q, and other public filings and press releases. NGL Energy Partners undertakes no obligation to publicly update or revise any forward-looking statements as a result of new information, future events, or otherwise. This conference call also includes certain non-GAAP measures, namely EBITDA, adjusted EBITDA, and distributable cash flow, which management believes are useful in evaluating our financial results. Please see the partnership's earnings releases investor presentations, and annual and quarterly reports on Form 10-K and Form 10-Q on our website at www.nglenergypartners.com under the investor relations tab for more information on our use of non-GAAP measures as well as reconciliations of differences between any non-GAAP measures discussed on this conference call to the most directly comparable GAAP financial measures. I will now turn the call over to our CEO, Mr. Mike Krimbill.

Thanks, Greg. Thanks for joining us. You know, I'd like to set the stage and really start off in a constructive, positive manner. We have, as you know, signed an agreement to sell Refined. We thought that would crater the stock price, going down at least a dollar or two. We're only down 38 cents, so we have a lot to celebrate. So... As you know, we are continuing our trend of significant events today as we announce the signing of an agreement to sell Transmontane Fine Products units. The proceeds based on June 30 values will approximate $300 million and be used to reduce debt. There will also be a reduction in our letters of credit. Both the cash and LC reductions will increase availability on our bank line of credit for growth opportunities that may arise. This transaction, in our opinion, should increase the value of NGL common units and reward our unit holders. Of course, that is yet to be seen. On to the Mesquite transaction, the Mesquite assets are being connected to the NGL infrastructure, namely our 24-inch pipelines. The Lee County Express to the east is now in service taking water, and the Western Express is in construction with an expected service date in late September. There are numerous opportunities that we are working on to fill these pipelines, as well as the Mesquite system. The liquid assets, which we had purchased earlier this year, are performing very well, particularly at the Chesapeake butane export facility. We are expanding the rail car capacity there to bring in more butane. Going forward, we expect more stability and predictability cash flows. We continue to focus on long-term contracts in all three businesses, so repeatability of our cash flows increases. Finally, we are positioned for organic growth in our business at attractive multiples. With that, I'll turn it back to Trey for specifics.