NGL also sold its Rack Marketing refined products business, its Limestone Ranch ownership and the company’s remaining crude rail car fleet. (Source Shutterstock)
NGL Energy Partners (NGL) announced the closing of several non-core asset sales for approximately $270 million, including 18 propane terminals bought by Alliance Energy Services, the companies announced May 5.
NGL also sold its Rack Marketing refined products business, its Limestone Ranch ownership and the company’s remaining crude rail car fleet. The company plans to focus on its core assets — water disposal networks in the Delaware, Eagle Ford and Denver-Julesburg basins. The company also maintains ownership of a crude logistics services business.
“These asset sales reduce the volatility and seasonality of our adjusted EBITDA and working capital requirements,” said Mike Krimbill, CEO of NGL, in a press release. “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.”
For Alliance, a Missouri-based wholesale propane marketing firm, the acquisition will expand its national footprint in propane supply and logistics.
"The acquisition of these 18 propane terminals represents a significant milestone for Alliance Energy Services," said Jason Doyle, CEO of Alliance, in a press release.
Breakwall Capital financed the deal with a sustainability-linked term loan to Alliance.
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