NGL Energy Partners (NGL) Declares $0.39 Quarterly Dividend; Plans to Grow Distributions

NGL Energy Partners (NYSE: NGL) declared a quarterly dividend of $0.39 per share, or $1.56 annualized.

The dividend will be payable on February 14, 2017, to stockholders of record on February 3, 2017, with an ex-dividend date of February 1, 2017.

The annual yield on the dividend is 6.8 percent.

“This is the fourth and final quarter of the temporary distribution reduction we announced last April,” stated Mike Krimbill, CEO of NGL. “Looking forward to the next four quarters and beyond, our management team expects to recommend a distribution of $1.76 per unit annualized for the quarter ending March 31, 2017 and to grow that distribution to $2.00 per unit annualized during the year. This would be 28% growth in distributions on an annualized basis for next year. Additionally, based upon current market conditions and commodity prices, we would expect to grow our distribution approximately 10% per year for the three years after fiscal 2018, while continuing to maintain our target distribution coverage of 1.3-1.5 times distributable cash flow. At this level, NGL would generate significant excess cash flow that would be re-invested into our business and used to reduce indebtedness. We have made tremendous progress on our projects and our balance sheet and with the successful start-up of the Grand Mesa pipeline and the various other projects recently completed or in progress, we see significant growth in our cash flows with minimal future capital investment required.”

Additionally, the Board of Directors declared a distribution for the quarter ended December 31, 2016 to be paid to the holders of the Class A Preferred Units according to the terms outlined in the Partnership Agreement. The Class A Preferred distribution will also be made on February 14, 2017.

For a dividend history and other dividend-related data on NGL Energy Partners (NGL) click here.

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