Business Context and Reporting Period
This Form 8-K Current Report was filed by NGL Energy Partners LP on August 20, 2019. The filing addresses corporate governance changes involving the Partnership's General Partner, NGL Energy Holdings LLC.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity metrics. It is a report on a specific corporate event rather than a periodic financial statement.
Material Changes
On August 20, 2019, the General Partner executed Amendment No. 4 to its Third Amended and Restated Limited Liability Company Agreement. This amendment grants EIG Management Company, LLC and FS/EIG Advisor, LLC (collectively "EIG") the right to designate one member of the Board of Directors of the General Partner. This change was made in connection with the purchase of Class D Preferred Units and warrants to purchase common units by affiliates of EIG on July 2, 2019.
Guidance, Outlook, and Risks
The filing contains no management commentary, financial guidance, or outlook. It does not disclose new risks or contingencies beyond the governance modification described. The terms of the amendment are qualified by reference to the full text of the GP LLC Agreement and its prior amendments.
Investor Verification Checklist
- Verify the terms of the Class D Preferred Units and warrants issued to EIG affiliates on July 2, 2019.
- Review the full text of Amendment No. 4 to the GP LLC Agreement (Exhibit 3.1) to understand the scope of EIG's director designation rights.
- Confirm the impact of this governance change on the Partnership's overall board composition and voting dynamics.