NGL Energy Partners LP Announces Agreement to Sell Its Bakken Saltwater Disposal Business to Tallgrass Energy
TULSA, Okla.--(BUSINESS WIRE)--Nov 12, 2018--NGL Energy Partners LP (NYSE:NGL) (“NGL”, “we”, “our”, or the “Partnership”) today announced that it has entered into a definitive agreement to sell NGL Water Solutions Bakken, LLC to an affiliate of Tallgrass Energy, LP (NYSE:TGE) for $91.0 million in cash proceeds. Proceeds from this transaction will be used to further reduce Partnership indebtedness. NGL’s Bakken water operations include five saltwater disposal wells located in McKenzie and Dunn Counties, North Dakota. The Partnership has made the strategic decision to exit the Bakken saltwater disposal business where it does not have a dominant position and focus on other shale plays primarily in the Permian Basin. The transaction is subject to certain regulatory and other customary closing conditions and is expected to close by the end of the calendar year.
NGL’s CEO, Mike Krimbill, stated: “The sale of our Bakken salt water disposal business advances our goal of reducing bank leverage to less than 3.25x by Fiscal Year End. We are pruning our water disposal business to further achieve prudent capital allocation, an increasing shift to a self-funding model and a continued focus on balance sheet strength and financial flexibility.”
“The addition of these assets to our recently expanded portfolio in the Bakken further enhances our presence in the basin and expands our services for our customers,” said TGE President and CEO, David G. Dehaemers Jr. “Over the past five years we have built preeminent water services infrastructure and this acquisition further expands our position as a leading provider of midstream water solutions in five of the nation’s most rapidly growing production regions.”
Advisor and Counsel
Raymond James & Associates, Inc. is acting as financial advisor to NGL.
Certain matters contained in this Press Release include “forward-looking statements.” All statements, other than statements of historical fact, included in this Press Release may constitute forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include, but are not limited to, the risk factors discussed from time to time in each of our documents and reports filed with the SEC.
Readers are cautioned not to place undue reliance on any forward-looking statements contained in this Press Release, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements.
About NGL Energy Partners LP
NGL Energy Partners LP is a Delaware limited partnership. NGL owns and operates a vertically integrated energy business with four primary businesses: water solutions, crude oil logistics, natural gas liquids logistics and refined products/renewables. For further information, visit the Partnership’s website at www.nglenergypartners.com.
About Tallgrass Energy
Tallgrass Energy, LP (NYSE: TGE) is a growth-oriented midstream energy infrastructure company operating across 11 states with transportation, storage, terminal, water, gathering and processing assets that serve some of the nation’s most prolific crude oil and natural gas basins.
To learn more, please visit our website at www.tallgrassenergy.com.
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CONTACT: NGL Energy Partners LP
Trey Karlovich, 918-481-1119
Executive Vice President, Chief Financial Officer
Linda Bridges, 918-481-1119
Senior Vice President – Finance and Treasurer
Tallgrass Energy, LP
Investor and Financial Inquiries
Nate Lien, 913-928-6012
Media and Trade Inquiries
Phyllis Hammond, 303-763-3568
KEYWORD: UNITED STATES NORTH AMERICA NORTH DAKOTA OKLAHOMA
INDUSTRY KEYWORD: ENERGY OIL/GAS
SOURCE: NGL Energy Partners LP
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PUB: 11/12/2018 06:30 AM/DISC: 11/12/2018 06:30 AM