NGL Energy Partners LP (NYSE:NGL) is an American propane business which operates across 3 vertically integrated segments: Midstream, Wholesale Supply and Marketing, and Retail Propane. The Midstream segment terminals propane from pipelines and trucks and sells it to third party trucks to deliver to propane retailers. The Wholesale Supply and Marketing purchases, stores, and transports propane to customers who are buying wholesale quantities of propane. Finally, the Retail segment sells and leases propane tanks and equipment in addition to selling retail propane.
The propane business tends to be very cyclical as it used most heavily as a heating oil. This means that demand for the NGL Energy Partners' products rise substantially during the heating months, from September 15th through March 15th. Because the company receives a substantial portion of its revenues from the Midwest and Southeast, warmer winters in this region would have an large impact on the demand for NGL Energy Partners' propane. Furthermore, changes in U.S. Environmental Legislation could impact the usage of propane versus electric heating sources. This too would negatively affect NGL Energy Partners.
The company's initial public offering of stock on the NYSE occurred on May 11, 2011. The company offered 3.5M shares each for $21. This was at the high end of the $19-$21 initial price range. This offering raised a total of $74M. The lead managers of the IPO were Wells Fargo (WFC) and RBC Capital Markets .
For the full year 2010, NGL Energy Partners' total revenue was $810M, while its net income was $7.9M.