Business Context and Reporting Period
This Form 8-K is a current report filed by NGL Energy Partners LP on April 23, 2015. The filing discloses executive compensation arrangements approved by the Board of Directors of NGL Energy Holdings LLC, the General Partner of the registrant.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on non-financial executive compensation details.
Material Changes
The material event reported is the approval of long-term incentive grants for H. Michael Krimbill, Chief Executive Officer of the General Partner. The grants consist of two types of unvested common units:
- Service Awards: 71,191 units vesting in three equal tranches on July 1, 2015; July 1, 2016; and July 1, 2017, contingent only on continued service.
- Performance Awards: Units vesting on the same dates as the Service Awards, contingent on both continued service and the performance of NGL's common units relative to the Alerian MLP Index.
Guidance, Outlook, and Management Commentary
The filing outlines the specific performance metrics for the Performance Awards. The number of units vesting ranges from 0% to 200% of the Service Award units based on the percentage of entities in the Alerian MLP Index that NGL outperforms:
| Percentage of Index Entities Outperformed | Percentage of Performance Award to Vest |
|---|---|
| Less than 50% | 0% |
| 50% - 75% | 50% - 100% |
| 75% - 100% | 100% - 200% |
Performance is measured over three-year periods ending June 30, 2015; June 30, 2016; and June 30, 2017, respectively.
Investor Verification Checklist
- Verify the total number of Service Award units granted (71,191 per tranche).
- Confirm the vesting schedule dates (July 1, 2015, 2016, and 2017).
- Review the specific calculation methodology for the Alerian MLP Index comparison.
- Check for any subsequent filings regarding the actual vesting outcomes based on market performance.