NGL Energy Partners Divests 17 NGL Terminals as Part of $270 Million Asset Sale
(P&GJ) — NGL Energy Partners LP has completed a series of non-core asset sales totaling approximately $270 million, the company announced.
The divestitures include the previously announced sale of 17 natural gas liquids terminals, the Green Bay terminal, its Rack Marketing refined products business, Limestone Ranch ownership, and its remaining crude railcar fleet.
“These asset sales reduce the volatility and seasonality of our Adjusted EBITDA and working capital requirements," said Mike Krimbill, CEO of NGL. "The proceeds will be used to pay off the remaining ABL balance and the excess cash will be used for additional deleveraging and addressing other parts of our capital structure."
The company said the sales reflect its strategy to focus on core assets and improve its balance sheet.
In December 2023, NGL Energy Partners launched a binding open season for its wholly owned affiliate Grand Mesa crude oil pipeline.
Grand Mesa provides takeaway capacity for crude oil producers in the Denver-Julesburg Basin. It originates in Weld County, Colorado, and extends approximately 550 miles southeast to NGL Crude Cushing, LLC’s storage terminal at Cushing, Oklahoma.
The pipeline is capable of receiving and batch transporting up to 150,000 barrels per day for delivery into the Cushing hub, which affords its shippers access to both U.S. Midcontinent refining and trading markets as well as the Texas Gulf Coast refinery complex. The pipeline not only supports the continued growth and production in the area but does so in a cost-effective and environmentally responsible way by reducing the current utilization of rail and truck transportation.
NGL held open seasons in 2016 and in 2021 seeking commitments from shippers interested in shipping on Grand Mesa’s pipeline system.
Related News
Related News
- 1,000-Mile Pipeline Exit Plan by Hope Gas Alarms West Virginia Producers
- Valero Plans to Shut California Refinery, Takes $1.1 Billion Hit
- Three Killed, Two Injured in Accident at LNG Construction Site in Texas
- Boardwalk’s Texas Gas Launches Open Season for 2 Bcf/d Marcellus-to-Louisiana Pipeline Expansion
- Traverse Pipeline Approved to Move 1.75 Bcf/d of Gas Along 160-Mile South Texas–Katy Route
- New Alternatives for Noise Reduction in Gas Pipelines
- Construction Begins on Ghana's $12 Billion Petroleum Hub, But Not Without Doubts
- DOE Considers Cutting Over $1.2 Billion in Carbon Capture Project Funding
- Valero Plans to Shut California Refinery, Takes $1.1 Billion Hit
- Newsom Seeks to Aid Struggling Refiners Following Valero’s California Exit
Comments