NGL Energy Partners moving upstream after merger

NGL Energy Partners LP has signed merger agreements with High Sierra Energy LP and its general partner, High Sierra Energy GP LLC. High Sierra Energy is a Denver-based partnership with three business segments: crude oil gathering, transportation and marketing; water treatment, disposal, recycling and transportation; and natural gas liquids transportation and marketing. NGL adds these segments around its existing retail propane business.

NGL will exchange common units and contribute cash for the equity interests in the High Sierra entities. The combined consideration for the High Sierra Energy entities is $693 million. The equity portion is expected to be about $433 million, and the cash portion will be about $150 million. Closing is anticipated in early June.

“With our combined fleet, a substantial wholesale marketing and supply network plus retail demand in excess of 140 million gallons of propane annually, we will be a full-service midstream solution for gas plant and fractionation operators, crude oil producers, refiners and retailers across the country,” says H. Michael Krimbill, CEO of NGL.

In other NGL news, Bryan Guderian has been appointed to the board of directors of NGL’s general partner, NGL Energy Holdings LLC. Guderian will serve as an independent director. He has also been appointed to serve on the audit committee.