NGL Energy Partners LP (NYSE:NGL) announced today that it has completed
the previously-announced acquisition of all of the equity interests of
Gavilon, LLC, the diversified midstream energy business owned by funds
managed by Ospraie Management, General Atlantic and Soros Fund
Management.
Gavilon principally operates integrated crude oil storage, terminal and
pipeline assets located in Oklahoma, Texas and Louisiana, along with a
complementary crude oil and refined products supply, marketing and
logistics business (SM&L). Gavilon’s crude oil assets include a 50
percent interest in Glass Mountain Pipeline, 4.14 million owned and 3.85
million leased barrels of storage in Cushing, Okla., a marine terminal
and nine truck terminals including more than 22 lease automatic custody
transfer (LACT) units. Through its SM&L business, Gavilon also leases a
network of over 200 trucks, 350 railcars and 8 barges to transport crude
oil for customers. In addition, Gavilon markets and supplies refined
products and natural gas liquids through a network of more than 300
distribution terminals across 39 states.
“This combination is important for NGL, adding our first major pipeline
investment in addition to crude oil storage at Cushing. The Glass
Mountain Pipeline is scheduled to be operational in January 2014,” said
H. Michael Krimbill, CEO of NGL. Greg Piper, Gavilon CEO, stated, “Our
employees and executive team are excited to join the NGL organization.
We have multiple organic projects in development and look forward to
continuing to enhance and expand our energy footprint.”
NGL Energy Partners LP also announced today that it has completed the
previously-announced issuance and sale of 8,110,848 of its common units
to a group of institutional investors in a private placement at a price
of $29.59 per unit, for aggregate proceeds of approximately $240
million. UBS Investment Bank acted as Sole Placement Agent on the
offering. Andrews Kurth LLP provided legal representation for NGL on the
offering.
The securities offered in the private placement have not been registered
under the Securities Act of 1933, as amended (the “Securities Act”), or
any state securities laws and may not be offered or sold in the United
States absent registration or an applicable exemption from registration
requirements of the Securities Act and applicable state laws. This press
release shall not constitute an offer to sell or a solicitation of an
offer to buy the securities described herein, and shall not constitute
an offer, solicitation or sale in any state or jurisdiction in which
such an offer, solicitation or sale would be unlawful.
In connection with the acquisition of Gavilon, UBS Investment Bank
served as NGL’s exclusive financial advisor and Locke Lord LLP served as
NGL’s legal counsel. Barclays served as Gavilon’s and the Sellers’
exclusive financial advisor. Jones Day and McGrath North provided legal
representation for Gavilon.
About NGL Energy Partners LP
NGL Energy Partners LP is a Delaware limited partnership. NGL owns and
operates a vertically integrated energy business with four primary
businesses: water services, crude oil logistics, NGL logistics and
retail propane. NGL completed its initial public offering in May 2011.
For further information, visit the Partnership’s website at www.nglenergypartners.com.
Forward-Looking Statements
This press release includes “forward-looking statements.” All statements
other than statements of historical facts included or incorporated
herein may constitute forward-looking statements. Actual results could
vary significantly from those expressed or implied in such statements
and are subject to a number of risks and uncertainties. While NGL
believes its expectations as reflected in the forward-looking statements
are reasonable, NGL can give no assurance that such expectations will
prove to be correct. The forward-looking statements involve risks and
uncertainties that affect operations, financial performance, and other
factors as discussed in filings with the Securities and Exchange
Commission. Other factors that could impact any forward-looking
statements are those risks described in NGL’s annual report on Form
10-K, quarterly reports on Form 10-Q, and other filings with the
Securities and Exchange Commission. You are urged to carefully review
and consider the cautionary statements and other disclosures made in
those filings, specifically those under the heading “Risk Factors.” NGL
undertakes no obligation to publicly update or revise any
forward-looking statements except as required by law.
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