NGL Energy Partners acquires Magnum NGLs infrastructure

NGL Energy Partners LP signed an agreement to acquire Magnum NGLs LLC and its natural gas liquids (NGLs) storage assets. According to a press release, Magnum owns and operates an NGLs storage facility southwest of Salt Lake City, with multiple salt caverns and a potential capacity of more than 10 million barrels. The facility has rail and truck access to Western U.S. markets, according to NGL Energy Partners.

The companies agreed on a purchase price of $280 million plus working capital adjustments at closing, according to NGL Energy Partners. The transaction will be paid through a combination of $80 million in cash and $200 million in NGL common units, the company reports. The transaction is expected to close in the first quarter of 2015.