Business Context and Reporting Period
This Form 8-K Current Report was filed by NGL Energy Partners LP on October 26, 2011, regarding an event that occurred on October 20, 2011. The filing addresses a material modification to the rights of security holders and an amendment to the Partnership's governing documents.
Key Financial Metrics
The filing does not provide specific financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity figures. The report focuses exclusively on a corporate governance action regarding distribution rights.
Material Changes
On October 20, 2011, NGL Energy Holdings LLC, the General Partner, amended the Second Amended and Restated Agreement of Limited Partnership. The key change is a waiver of distributions for the quarter ended September 30, 2011, specifically affecting 4,000,000 common units. These units were issued pursuant to the Contribution and Sale Agreement dated August 12, 2011, involving E. Osterman Propane, Inc., its affiliates, and members of the Osterman family.
Guidance, Outlook, and Risks
The filing contains no management commentary, financial guidance, or outlook for future periods. It does not disclose new risks or contingencies beyond the specific amendment to the Partnership Agreement. The description of the amendment is qualified by reference to the full text of the First Amendment filed as Exhibit 3.1.
Investor Verification Checklist
- Verify the terms of the Contribution and Sale Agreement dated August 12, 2011, to understand the context of the 4,000,000 common units.
- Review Exhibit 3.1 (First Amendment to the Partnership Agreement) for the full legal text of the distribution waiver.
- Confirm the impact of the distribution waiver on the total quarterly distribution per unit for the quarter ended September 30, 2011.
- Check subsequent filings to determine if the waiver was temporary or if it affected future distribution rights for these specific units.