TULSA, Okla. – NGL Energy Partners LP (NYSE:NGL) 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.”