Slide 1 - NGL Energy Partners LP

Report
Analyst Meeting
June 22, 2012
NGL Energy Partners, LP
Mike Krimbill
Chief Executive Officer & President
Craig Jones
Chief Financial Officer
Atanas Atanasov
Vice President & Treasurer
High Sierra Energy, LP
Jim Burke
Chairman & Chief Executive Officer
Nick Aretakis
Chief Financial Officer
David Kehoe
Chief Operating Officer
2
This presentation may include certain statements concerning expectations for the future
that are forward-looking statements as defined by federal law. Such forward-looking
statements are subject to a variety of known and unknown risks, uncertainties, and other
factors that are difficult to predict and many of which are beyond management’s control.
An extensive list of factors that can affect future results are discussed in the Partnership’s
Annual Report on Form 10-K and other documents filed from time to time with the
Securities and Exchange Commission. The Partnership undertakes no obligation to
update or revise any forward-looking statement to reflect new information or events.
3
Following the merger with High Sierra, NGL has a significant presence in the most prolific oil and
natural gas shale plays in the country
4
Steady distribution growth to maximize unit holder return
Enhance access to equity markets
MLP Equity Value
Projected to be 12-15% annually
Strong common unit coverage
Focused Growth
EBITDA and DCF
Stability / Predictability
Financial
Increase volumes for all segments in existing markets
Expansion of services in new high growth basins / shale plays
Pursue organic growth at low multiples, targeting +25% ROR
Accretive acquisitions at attractive multiples
Emphasis on repeatable cash flows
Target Retail pre-sales and customer deposits
Ownership of assets / infrastructure
Minimize commodity price risk through back-to-back transactions and hedging
Maintain a conservative capital structure and low leverage
Target Total Debt / EBITDA of 3.0x – 3.5x
Maintain sufficient liquidity to provide for existing and future requirements
Continue to improve access to debt and equity markets, positioning for investment grade
rating
5
Strategically Located Assets
Assets located in some of the most prolific natural gas and crude oil plays in the country
Eagle Ford, Bakken, Niobrara and Marcellus shales
Granite Wash, Wattenberg Field, Mississippian Lime, Pinedale Anticline and Jonah Fields
Substantial NGL storage and terminals
Emphasize asset ownership so able to capitalize on opportunities
Large rail car fleet - +2500 cars
Leading Service Provider with
Significant Logistics Expertise
Leading crude oil and condensate gatherer, transporter and marketer in the Midcontinent region
Leading provider of NGL transportation services nationwide by railcar with an in-house dedicated logistics
team
Leading private terminal operator in the U.S.
Sixth largest propane retailer
Leading provider of water disposal and water recycling in the Rockies
Geographically Diverse and
Multiple Segments Reduces
Risk
Coast to Coast Retail operations and Terminal locations
Four segments providing significant and diverse cash flows
Scalable Business Model
Water recycling technology can be implemented quickly at new facilities / locations
Crude Oil Segment has grown from start-up to national presence through acquisition and organic growth
Ability to add additional rail cars with low incremental expense
Bolt-on retail assets to existing operations
Experienced Management Team
and Strong Private Equity
Support
Senior management team has an average of 30 years of industry experience
Proven record of acquiring, operating and growing successful businesses
Extensive integration experience
Retail Tank Ownership
Company owned tanks approximately 90%
Conservative Balance Sheet
Leverage at approximately 3.0x
Significant Excess DCF to reduce debt and fund growth
Significant borrowing capacity available
6
Fee-Based EBITDA includes water segment revenues and terminal fees
Water Segment
A fee is charged on every barrel of water handled
Terminal Throughput
A fee is charged on each gallon moving thru the terminals
Margin-Based EBITDA includes the Crude Oil and NGL Logistic segments as well as Retail Propane
Margins for Crude Oil and NGLs are derived from purchase and sale transactions on a back-to-back basis
Retail cost plus margin
Volume stability and growth resulting from physical assets, long-standing customer and supplier relationships, and
a focus on employee expertise / service
Cost Plus EBITDA includes Wholesale Supply and Marketing and Pre-Sold Gallons
Price to customer determined from cost of product plus storage, transportation, financing charge and margin
7
NGLEP has successfully acquired and integrated numerous companies and businesses over
time
Scalable business model with significant room for organic growth
October 2010– Combines
NGL Supply and Hicks Gas
October 2011– Acquires
OstermanPropane, one of
largest independents in US
January 2012– Acquires
Pacer Propane, one of largest
independents on west coast
April 2012 – Acquires
Proflame and Global
Propane
June 2012– Merger
With High Sierra
Energy
May 2011 – Completes
November 2011 – Acquires
February 2012 – Acquires
May 2012 – Acquires
$84 million IPO
SemStream, LP
– 12 terminals
– 431 railcars
– 3 million barrels of leased
underground storage
North American Propane; folds
into OstermanPropane
Downeast Energy
8
WATER SERVICES
PRO FORMA ADJUSTED EBITDA - $42.1MM
9
Anticline (Wyoming)
Overview
Treatment of oil and gas waste-water
for recycling, clean water discharge,
or disposal using a multi-patented
process technology
DJ Basin (Colorado)
Overview
Leading provider of oil and gas wastewater disposal services
Mississippian
Overview
Water hauling and frac tank rental for
third parties
Recycling plants to sell water back to
producers
Assets include:
Assets include:
Assets include:
• 1 treatment & recycling plant in Wyoming
• 7 water disposal facilities with 8 deep
injection wells
• 50 owned tractor/trailers in service for
hauling water in Kansas and
Oklahoma
•
60,000bbls / day of recycling capacity
•
20,000bbls / day of discharge capacity
• 19 miles of pipeline for delivery of
recycled water back to the field
• 1 deep injection well
• 3.5 MM bbls of water storage capacity
• ~ 50,000bbls / day of current
aggregate capacity
• First recycling plant added to existing
disposal facility
• 65 frac tanks
• Misc associated equipment for use in
the completion and operation of wells
• 2nd recycling plant completed, pending
final permitting
10
Demonstrated history of growing water volumes
Water Segment operations are strategically located in prolific oil and gas plays with established production profiles and
strong expectations for future drilling in crude oil shales
Anticline in Wyoming:
Pinedale Anticline: Large base of active wells. As of March 31, 2012, there were ~1,990 wells producing 53,400 bbls of water per day(1)
Planned expansion into Jonah field: As of March 31, 2012, there were ~1,725 wells producing 11,100 bbls of water per day(1)
DJ Basin in Colorado:
Wattenberg Field: ~21,900 active wells as of March 31, 2012 and an increasing number of wells being permitted each year(1)
Niobrara Shale: Significant recent horizontal drilling demonstrating promising results in Niobrara
Nicholas in Midcontinent:
Multiple conventional reservoirs with long-term producing assets
Emerging Mississippian Lime and Granite Wash plays
Anticline Water Volumes
800
1,200
700
1,000
600
800
500
Mbls per month
Mbls per month
DJ Basin Water Volumes
400
300
200
100
-
600
400
200
-
Water
Trailing 12 month Moving Average
Water
(1) Source: HPDI
Trailing 12 month Moving Average
11
Located in Pinedale, Wyoming, and sources water from wells in the Pinedale Anticline and
Jonah natural gas fields
Leading provider of treating, recycling, discharge and disposal services for oil and gas
produced and frac flow back waste-water
Consists of two water treatment plants - a recycling plant and a discharge plant
Currently approximately 75% of water received is treated and redelivered back to the field, primarily
through HSE’s nineteen mile pipeline system, with the remainder delivered by trucks
Remaining 25% of received water is further treated to “ultra-clean” standards and discharged into the
river
Stable revenues generated from minimum volume deliver-or-pay contracts whereby
customers are charged a fixed fee per barrel
Successful growth story since 2006
Planned Expansion of pipeline for growth up to 25,000 barrels per day
Strategic location and large, independent E&P clients
Significant competitive advantages and growth opportunities
12
Anticline Assets
The Anticline Water Segment assets are strategically
located in the core of the Pinedale Anticline, one of
the top 5 largest natural gas fields in the US (1)
Significant Fee-Based Cash Flow
Area Map
Wyoming
Sublette County
Pinedale
Water
Assets
Pinedale
Per barrel fees paid by the E&P companies to treat,
clean and either dispose of the water associated with
their drilling and production or recycle it and bring it
back to the field for reuse in drilling operations
Jonah
Over 90% of the volumes being processed at the
Anticline facility come from deliver-or-pay contracts
whereby customers are charged a fixed fee per
barrel of water
These contracts are with the top E&P companies
in the Pinedale
_____________________
(1)
Source: US Energy Information Administration.
13
Critical Service Offering in the Anticline
Competitive Advantage
There are over 1,990 active wells producing 53,400 barrels
per day of waste water in the Pinedale Anticline
Wells drilled in the area utilize hydraulic fracking, which
require 1- 3 million gallons of water per well, increasing the
amount of waste water being generated in the area
HSE’s services are critical in the Pinedale Anticline as a
result of a strong emphasis on the part of E&P companies to
safely dispose of this water and to reuse as much of it as
possible
The top 3 operators in the Pinedale formed an alliance with
the BLM (1) to ensure responsible development in the
Pinedale, with particular emphasis on water usage and
disposal
Only full scale commercial water recycling and treatment
facility in the Pinedale capable of handling the water needs
of the producers in the area
Pinedale region has limited private land availability for any
potential competing facilities of size
Geology in the area is not conducive to disposal wells
Approximately 90% of volumes are deliver or pay contracts
Primary Growth Opportunities
Specifically, the E&P companies have 2 critical concerns:
Ensuring that the water both used and produced during
the drilling process does not impact underground drinking
water sources or wildlife habitats
The ability to access water for drilling operations in an
efficient, cost effective way through recycling and re-use
Expansion of operations from the Pinedale down into the
Jonah and emerging fields to the southwest of the Jonah
As one moves southwest, the gas becomes richer
The Pinedale averages 1,050 BTU gas
The Jonah averages 1,150 BTU gas
_____________________
(1)
Bureau of Land Management. Of the approximately 200,000 acres in the Pinedale, an estimated150,000 belong to the BLM.
The majority of the mineral leases in the Pinedale underlie BLM surface land.
14
Seven water disposal facilities located in the Wattenberg Field in the Denver-Julesburg Basin
Current combined capacity of approximately 50,000 bbls / day
Each facility has a receiving station, storage and pumping equipment and at least one 9,000 – 10,000 ft. deep injection well
High producer demand for water services – facilities running at near capacity
Estimates that HSWS disposes of approximately 80% of all produced water generated in and around Weld County, including
90% of all produced water sent to third party commercial disposal facilities
Diverse revenue streams
Per barrel water disposal fee charged to receive, process and dispose water in deep injection wells
Resale of recycled water
Contracts with Top Producers
Over 100 customers with over 90% of volumes under long-term contracts
Contracted with acreage dedications with a 4-year average remaining life
Currently negotiating long-term minimum volume or acreage dedication contracts with additional producers in the basin
Substantial Growth Opportunities
Two additional disposal wells in 2012 and one new facility with planned completion in 2013
Significant additional growth expected from horizontal drilling in the Niobrara shale
Additional recycling facilities planned
(1) Source: HPDI
15
DJ Basin Assets
Assets are strategically located in the core of the DJ
Basin - the Wattenberg Field in Weld County, CO
Area Map
Wyoming
Niobrara
Water
Assets
Significant Fee-Based Cash Flow
Per barrel fee paid by E&P companies to receive,
process and dispose of waste water into deep injection
wells
Also earn a fees for recycling water and delivering it
back to the producers for reuse in drilling operations
Nebraska
Niobrara
Shale
Colorado
Given the high demand for water in the area and
increased difficulty in sourcing new water, recycling is a
key area of growth within this segment (and commands a
higher margin)
Contracts in place with three of the largest Niobrara
producers, who comprise over 40% of the acreage in
the play, to provide water disposal services, with
approximately 75% of all producing wells using HSE
facilities
16
Currently the largest oil and gas waste water disposal business in Colorado
Strategically located throughout Denver-Julesburg Basin
Facilities and
Disposal Capacity
C10
C8
Weld
County
Apollo (Competitor)
1 – 1,000 bbls/day
C7
High Plains (Competitor)
1 – 2,600 bbls/day
2 – 1,700 bbls/day
2
HSWS
1
Existing & Under Construction
C1
C6
C1 – 11,200 bbls/day (2 wells)
C2 – 5,400 bbls/day (1 well)
C2
1
C3
C4 – 5,000 bbls/day (1 well)
C4
C6
C2
C3 – 6,700 bbls/day (1 well)
C9
C6 – 5,500 bbls/day (1 well)
C7 – 7,500 bbls/day (1 well)
C8 – 7,500 bbls/day (est.)
HSWS Planned Expansion
C9 – 6,000 bbls/day (2013)
Note: Larger circles illustrate larger disposal capacity
C10 – 6,000 bbls/day (2014)
C11 – 6000 bbls/day (2015)
17
Critical Services in the DJ Basin
Over 1,000 wells drilled in 2011, with the majority of these
wells drilled in the core of the play, the Wattenberg Field in
Weld County, CO
Drilling expected to exceed 1,500 wells per year by 2015
Frac jobs require 2 – 4 million gallons of water per well
Water recycling services becoming increasingly important in
coming years due to water sourcing and preservation
concerns
Competitive Advantage
Largest water disposal operation in the Niobrara play;
operations are currently concentrated in the play’s core,
the Wattenberg Field
Currently disposes approximately 80% of all waste
water generated in and around the Wattenberg Field
The facilities run at near full capacity as a result of
rapidly increased drilling
Patented technology
Currently, water is primarily obtained from municipalities
Most other groundwater and surface water is designated
for agriculture or subject to usage restrictions
Primary Growth Opportunities
Continue to grow with largest current customers:
5 additional disposal wells planned through 2015,
bringing total capacity to over 70,000 bbls per day
2 recycling facilities to allow for water re-use in the field
Provide water trucking services.
Expand producer relationships, with an emphasis on
Northern Weld County. Additional relationships will lead
to additional disposal and recycling plants
18
IRRs of Liquid Rich Plays(1)
Water Needs in This Area
Wells in this area produce a significant amount of water
Oklahoma is an oil & gas regulatory friendly state that
understands the industry need for deep hole injection
wells
As the Mississippian play continues to expand, water
from recycling will become and increasing source of
water supply for drilling operations
Competitive Position in the Mississippian Play
The largest water operation in the play through
ownership of approximately 50 trucks and trailers and 67
frac tanks; approximately 40% – 50% larger than the
number two provider in the play
Two largest E&P customers have a total of 41 rigs
drilling in the Mississippian and are the two most active
in the play currently
No direct commodity price exposure
60%
50%
40%
30%
20%
10%
0%
50%+ 50%+
46%
39%
37%
36%
35%
31%
23%
18%
Primary Growth Opportunities
Extremely well positioned to grow operations along with
the continued growth of the Mississippian play
_____________________
(1)
Source: Wall Street Research.
19
CRUDE OIL LOGISTICS
PRO FORMA ADJUSTED EBITDA - $28.1MM
20
Primarily focused on purchasing crude oil from producers at oil and gas wells
throughout the Midcontinent, Rocky Mountain, and Gulf Coast regions, and
transporting it for re-sale to a pipeline injection point, storage terminal, barge loading
facility, rail facility, refinery, or trade hub
Crude Segment also purchases natural gasoline and condensate from gas plants for
re-sale
Average volumes of approximately 60,000 barrels of crude oil per day
Approximately 4,000 active lease locations, representing ~ 500 different producers or marketers
Transportation logistics optimized through utilization of linear programming
20+ year track record of customer retention
Additionally, transports NGLs and other hydrocarbons for third parties for a fixed-fee
per barrel
Expanding the rail and barge operations to grow volumes and enhance margins
21
Crude Oil Business Model
Refinery
S
• Purchase from ~4,000 active lease locations
representing ~500 producers
Common Carrier
Pipelines
• Average volumes of ~60,000 bbls/day
S
S
Cushing, OK
or other trade hub
P
Leased Railcars
Owned Truck or
Common Carrier Truck
S
Storage terminals
Company owned or
in Rio Hondo, TX leased Barge Terminal
(owned)
and Catoosa, OK
(leased)
S
P – Purchase Point
S – Sales Point
S
22
Purchase and sale transactions are entered into on a back-to-back basis
As crude oil or NGLs are purchased, one or more sale transactions are entered into involving physical
deliveries of crude oil or NGLs
Purchase and sale contracts are each based on a commodity price index, typically set for a 30-day term
for crude oil and up to one year for NGLs and renewed on an evergreen basis
Financial hedges used for inter-month deliveries and for physical inventory
Strict open position limits under Market Risk Policy
Long-term relationships with high-quality suppliers and customers
Credit department monitors counterparty exposure
23
NGL RAILCAR SEGMENT
PRO FORMA ADJUSTED EBITDA - $18.6MM
24
Transports and markets natural gas liquids (“NGLs”) to and from refiners, gas processors, propane
wholesalers, petrochemical plants and other merchant users or wholesalers of NGLs
Leading service provider, growing primarily through existing customer relationships with major
refiners, petrochemical companies, and gas processors – in some cases up to 20 years
Ability to combine knowledge of non-transparent markets with superior rail logistics, utilizing a 10
person team of logistics specialists who optimize margins by efficient use of rail cars
NGL’s capabilities and knowledge of rail logistics have become an integral tool for large, integrated oil and gas
companies who wish to outsource the product procurement and delivery process
Nationwide service offering in each of the lower 48 states and Canada is a competitive advantage
relative to competitors, many of which have regionally focused operations
Utilization of terminal storage to take advantage of seasonal price differentials
Volumes are largely comprised of propane, butane and asphalt
Purchase and sale transactions are entered into on a back-to-back basis for matched aggregate
exposure
Average volumes of approximately 45,000 barrels per day from approximately 100 customers in 140
locations
25
NGL LOGISTICS (TERMINALS)
PRO FORMA ADJUSTED EBITDA - $11.8MM
26
18 proprietary terminals serving over 300
customers
10 terminals with rail loading capability
5 multi-product terminals
Railcar fleet of 431 pressure cars, growing to 600
by 4Q 2012, and 210 general purpose cars
Automated truck loading and unloading facilities that
operate 24 hours a day
16.5 million gallons above ground storage
Terminal throughput of 419 million gallons of propane
projected in 2012 – 2013
27
28
NGL LOGISTICS (WHOLESALE SUPPLY &
MARKETING)
PRO FORMA ADJUSTED EBITDA - $18.5MM
29
Extensive customer base with over 700 wholesale
customers in 40 states
880 million gallons of propane projected to be sold in
2012
Open access to 7 common carrier pipelines
18 proprietary owned terminals
165 million gallons of NGL leased storage capacity
30
RETAIL
PRO FORMA ADJUSTED EBITDA - $69.7MM
31
Hicksgas
Downeast
Osterman
Pacer
North American
Propane
Pacer
Brantley
Global Propane
Propane Central
Proflame
Approximately 280,000 customers
85 customer service locations
51 satellite distribution locations
90% tank ownership
145 million propane gallons
38 million distillate gallons
Above ground storage capacity of approximately 8
million gallons
32
Growth-oriented, diversified midstream MLP, with significant, stable cash flows to sustain
consistent distribution increases and disciplined approach to leverage
NGL has a significant presence in multiple energy segments
Market leader in oil and gas field waste water treatment
Gathers approximately 60,000 barrels of crude oil per day
One of the five largest private terminal owner/operators, with 18 terminals in U.S. and Canada
Over 2,500 leased rail cars hauling NGLs and crude oil
165 million gallons of underground leased storage, 16.5 million gallons of owned above-ground
storage and eight million gallons of storage at retail district locations
Top six propane and fuel oil retailer
Over 1,700 employees
33
Enhances access to equity and debt markets, diversifying funding sources
Significant excess cash flow to fund low multiple growth projects and reduce debt
Improves credit metrics and accelerates investment grade rating
Increased float promoting greater daily trading volume
Water Segment provides leading position in rapidly expanding midstream market segment
Increased penetration into domestic Shale Plays with more diverse set of services
Addition of experienced, highly regarded midstream executive and operating
management team
Enhanced geographic and business line diversification
34
NGL EBITDA Contribution by
Segment (1)
NGL
Logistics
Combined EBITDA Contribution by
Segment (1)
30.3%
Water
Services
Retail
69.7%
22.3%
Retail
36.9%
High Sierra EBITDA Contribution
by Segment (1)
14.9%
NGL
Logistics
25.9%
20.9%
47.4%
Crude Oil
Logistics
31.6%
Water
Services
Crude Oil
Logistics
NGL
Logistics
_____________________
(1)
Represents estimated pre-G&A segment EBITDA for the fiscal year ending 3/31/2013.
35
PRO FORMA FINANCIALS
(NO GROWTH CASE)
36
PRO-FORMA COMBINED EBITDA FORECAST
(in millions except per unit amounts)
No Growth Case:
FYE
2013
NGL Energy Partners:
NGL Logistics (Terminals)
$11.8
NGL Logistics (Wholesale Supply & Other)
18.5
Retail
69.7
Total Pre-G&A EBITDA
$100.0
High Sierra:
Water Services
$42.1
Crude Oil Logistics
28.1
NGL Logistics (Rail Car)
18.6
Total Pre-G&A EBITDA
$88.8
Combined G&A
($17.7)
Total Pro-Forma EBITDA
$171.1
_____________________
Note: Reflects full fiscal year 2013 (i.e. 12 month period ending 3/31/2013).
37
PRO-FORMA COMBINED DISTRIBUTABLE CASH
FLOW FORECAST
(in millions except per unit amounts)
No Growth Case:
FYE
2013
Total EBITDA
$171.1
Less: Maintenance Capex
($13.0)
Less: Interest Expense
Less: Other (1)
(29.1)
(1.4)
Total Distributable Cash Flow
Smoothed DCF
Total LP Units Outstanding
$127.6
50.9
Distributions per LP Unit
$1.65
Total Distributions (including GP)
$84.8
Total Distribution Coverage Ratio
1.5x
_____________________
Note: Reflects full fiscal year 2013 (i.e. 12 month period ending 3/31/2013).
(1)
Canadian income taxes, minority interest related to compression segment and removal of non-cash deferred gains on asset sales.
38
PRO FORMA FY 2013 DEBT SCHEDULE
(in millions)
Senior Secured Notes
Credit Facility Debt
Beginning Balance
Paydowns (owing to non-distributed cash flow)
Ending Balance
Avg Letters of Credit
Avg Working Capital
Total
Rate
Interest
Expense
$250.0
6.65%
$16.6
$254.0
(42.8)
$211.2
3.75%
$9.5
$40.0
$50.0
3.25%
3.25%
$1.3
$1.6
$551.2
4.9%
$29.1
Principal
No Growth Case:
(1)
_____________________
(1)
Assumes debt paydowns occur at the end of the fiscal year and therefore do not impact interest expense until the following year.
39
PRO FORMA FINANCIALS
(GROWTH CASE)
40
PRO-FORMA COMBINED EBITDA GROWTH
FORECAST
(in millions except per unit amounts)
Growth Case:
FYE
2013
FYE
2014
FYE
2015
NGL Energy Partners:
NGL Logistics (Terminals)
$11.8
$11.8
$11.8
NGL Logistics (Wholesale Supply & Other)
18.5
18.5
18.5
Retail
69.7
69.7
69.7
$100.0
$100.0
$100.0
$42.1
$42.1
$42.1
Crude Oil Logistics
28.1
28.1
28.1
NGL Logistics (Rail Car)
18.6
18.6
18.6
Total Pre-G&A EBITDA
$88.8
$88.8
$88.8
Acquisition / Internal Growth EBITDA (1)
$15.0
$50.0
$90.0
Combined G&A
($17.7)
($17.7)
($17.7)
Total Pro-Forma EBITDA
$186.1
$221.1
$261.2
Total Pre-G&A EBITDA
High Sierra:
Water Services
_____________________
(1)
Assumes $150 million of acquisitions in FY 2013 and $200 million in each of FY 2014 and 2015. Acquisitions are assumed at a 5.0x EBITDA multiple
and occur mid-year (i.e. only half of the EBITDA is realized in the year in which the acquisition occurs). Assumes 100% debt financing.
41
PRO-FORMA COMBINED DISTRIBUTABLE CASH
FLOW GROWTH FORECAST
(in millions except per unit amounts)
Growth Case:
FYE
2013
FYE
2014
FYE
2015
Total EBITDA
$186.1
$221.1
$261.2
Less: Maintenance Capex
($14.3)
($17.9)
($21.7)
(31.9)
(37.2)
(43.7)
(1.4)
(1.4)
(1.5)
Less: Interest Expense
Less: Other (1)
Total Distributable Cash Flow
Smoothed DCF
$138.6
$164.6
$194.3
Total LP Units Outstanding
50.9
50.9
50.9
Distributions per LP Unit (2)
$1.73
$1.93
$2.13
Total Distributions (including GP)
$89.6
$102.8
$119.2
Total Distribution Coverage Ratio
1.5x
1.6x
1.6x
_____________________
(1)
HSE's Canadian income taxes, minority interest related to compression segment and removal of non-cash deferred gains on asset sales.
(2)
Assumes $.05 per unit annualized distribution increase each quarter.
42

similar documents