NGL Energy Partners To Expand Permian Water Footprint With $600 Million Deal

NGL Energy Partners LP agreed to a multimillion-dollar acquisition on Sept. 26 set to boost the Tulsa, Okla.-based company’s growing water midstream footprint in the Permian Basin.

In the agreement, NGL Energy Partners will acquire all of the equity interests of Hillstone Environmental Partners LLC, owner of a produced water transportation and disposal system located in the Northern Delaware Basin, from Golden Gate Capital for $600 million. NGL plans to fund the acquisition through preferred equity and debt commitments.

Mike Krimbill, NGL’s CEO, said the Hillstone transaction is highly complementary to the company’s Delaware Basin asset footprint, which NGL claimed earlier this year to be the largest following its acquisition of Mesquite Disposals Unlimited LLC.