NGL Energy confirms Mesquite acquisition, secures investment form EIG
Category: #business  By Mateen Dalal  Date: 2019-07-03
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NGL Energy confirms Mesquite acquisition, secures investment form EIG

Combining the assets of Mesquite will create Delaware Basin’s largest water disposal system

NGL Energy Partners LP, a diverse midstream MLP providing several services to end-users and producers, recently announced that it has completed its acquisition of Mesquite Disposals Unlimited, LLC’s assets for approximately $892.5 million in a debt-free and cash-free deal, with a certain amount to be funded in deferred payments.

CEO of NGL, Mike Krimbill said that the conclusion of Mesquite transaction will create the largest system for water disposal in Delaware Basin. The capacity will exceed two million barrels every day and specifically provides the redundancy that customers need. The Lea and Eddy Counties are provided with multiple disposals, recycling options and transportation by the combined system which also helps NGL to stick to its commitments.

Mesquite will be working along with NGL and operate the assets while also working on expanding business with additional contracts and facilities, Krimbill informed.

Reportedly, $400 million of the acquisition cost was funded by gross earnings from privately placed equity securities, sold in cash to the investment funds managed by FS Energy & Power Funds and EIG Global Energy Partners.

Krimbill also commented on the recent investment by EIG in NGL, welcoming Brian Boland to the company’s board of directors in relation to the partnership with EIG. The company is looking forward to working with the EIG team on more opportunities in the forthcoming years, Krimbill added.

EIG’s Managing Director and Co-head of Midstream, Brian Boland said that NGL’s diverse and high quality asset base, which includes the platform for multi-basin water solutions in the United States, is a good investment. The company expects NGL to provide unparalleled capabilities owing to its existing presence in the Northern Delaware basin and the acquisition of Mesquite assets, which in turn will facilitate the best execution for its customers.

Boland further elaborates on how strategically the system of NGL is located in Delaware basin’s core and the position will leverage the rising water levels along with a steady growth of oil production.

 

Source Credit- https://nglenergypartnerslp.gcs-web.com/news-releases/news-release-details/ngl-energy-partners-lp-closes-combination-mesquite-and-announces

About Author

Mateen Dalal    

Mateen Dalal

Despite working as a professional testing engineer, Mateen Dalal always held a liking for content creation. Following his passion, he now pens down articles for itresearchbrief.com and a couple of similar portals. Mateen is a qualified electronics and telecommunicat...

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