NGL Energy Partners LP (NYSE:NGL) announced today that it has completed
its acquisition from Morgan Stanley affiliates of (i) TransMontaigne
Inc., the owner of TransMontaigne GP L.L.C., which is the general
partner of TransMontaigne Partners L.P., a master limited partnership
which trades on the New York Stock Exchange under the symbol “TLP”, (ii)
the limited partnership interest of TransMontaigne Partners L.P. held by
TransMontaigne Inc., amounting to approximately 17% of the outstanding
units, (iii) the limited partnership interest of TransMontaigne Partners
L.P. held by affiliates of Morgan Stanley, amounting to approximately 3%
of the outstanding units and (iv) certain entities associated with the
TransMontaigne business as well as the related inventory and pipeline
and other contract rights. The purchase of Morgan Stanley’s energy
business related to TransMontaigne was completed on a debt-free basis
for a cash purchase price of $200 million, including working capital,
plus $347 million for inventory transferred at the closing. The
transaction did not involve the sale or purchase of any of the LP units
owned by the public.
In connection with the acquisition, LCT Capital and UBS Investment Bank
served as NGL’s financial advisors and Winston & Strawn LLP served as
NGL’s legal counsel.
Quarterly Distribution Outlook
The management of NGL Energy Partners LP intends to recommend to the
board of directors of its general partner that NGL increase its
quarterly distribution for the first fiscal quarter ended June 30, 2014,
by $0.0375 to $0.58875 per outstanding limited partner unit from
$0.55125 per unit, resulting in an annualized cash distribution of
$2.355 per outstanding limited partner unit. On an annualized basis this
represents an increase of $0.15 from $2.205 per unit to $2.355 per unit.
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 solutions, 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 as www.nglenergypartners.com.
About TransMontaigne Partners L.P.
TransMontaigne Partners L.P. is a terminaling and transportation company
based in Denver, Colorado, with operations along the Gulf Coast, in the
Midwest, in Brownsville, Texas, along the Mississippi and Ohio Rivers
and in the Southeastern United States. TransMontaigne Partners L.P.
provides integrated terminaling, storage, transportation and related
services for companies engaged in the distribution and marketing of
light refined petroleum products, heavy refined petroleum products,
crude oil, chemicals, fertilizers and other liquid products. Light
refined products include gasolines, diesel fuels, heating oil and jet
fuels; heavy refined products include residual fuel oils and asphalts.
TransMontaigne Partners L.P. does not purchase or market products that
it handles or transports.
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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