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NGL Energy Partners posts annual loss of $585.2 million, while Laredo Petroleum completes reverse stock split

TULSA — NGL Energy Partners reported this week it lost $585.2 million during its fiscal year that ended March 31.

Meanwhile, Laredo Petroleum announced it completed a reverse stock split to keep its shares active on a major exchange.

As for NGL, company officials attributed losses for both its fourth quarter and year in part to a $250 million non-cash goodwill impairment charge it took that involved the water solutions segment of its business.

The company also took a non-cash goodwill impairment charge on its crude oil logistics business in the final quarter of the year, as that segment handled lower volumes of a less-valuable product.

Officials attributed those trends to the energy market collapse caused by the global war for market shares and the coronavirus pandemic, reporting the segment earned about $16.8 million in the final quarter of its fiscal year, compared to about $29.3 million the previous year.

Its liquids and refined products segment, however, earned an operating income of about $29.2 million in the company’s fiscal fourth quarter, compared to losing about the same amount in 2019. Strong demand helped that segment of NGL’s business.

For the fourth quarter of 2020, NGL reported losing $268.9 million, or $2.09 per unit, compared to a 2019 net income of about $24.1 million, or 20 cents per unit.

The company’s annual net loss shook out to $4.59 per unit, compared to a net income of about $247.7 million, or $2.01 per unit, for 2019.

The company’s 2020 earnings before interest, taxes, depreciation and amortization (EBITDA) was about $49.9 million in 2020, compared to about $751.7 million in 2019.

The company stated in its release that its adjusted EBITDA of $589.5 million (after accounting for discontinued operations) was at the high end of its guidance range.

Mike Krimbill, NGL’s CEO, said he was proud of the company’s performance, given the nation’s energy industry and overall economy collapses.

“Since our fiscal year-end, we have taken significant steps to improve our balance sheet and liquidity, including reductions in capital expenditures, distributions and operating costs, while also taking advantage of our diversified business platform to maximize cash flows,” Krimbill said. “As we stated previously, we see significant challenges and opportunities in this uncertain environment, but believe our business model and diversified asset footprint will continue to prove beneficial through this cycle.”

Reverse split executed

Tulsa -based Laredo Petroleum announced June 1 it completed a 20-for-one reverse stock split that reduced its number of shares from 450 million to 22.5 million and will keep its stock listed on the New York Stock Exchange, for now.

The company asked its shareholders to authorize the reverse split after getting notified in March that its stock, traded under the ticker LPI, no longer met the exchange’s listing requirements.

Earlier this year, both Mid-Con Energy Partners and Chesapeake Energy also conducted reverse splits to keep their shares active on major exchanges.

Jack Money

Jack Money has worked for The Oklahoman for more than 20 years. During that time, he has worked for the paper’s city, state, metro and business news desks, including serving for a while as an assistant city editor. Money has won state and regional... Read more ›

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