NGL Energy Partners LP Announces Agreement to Sell Its Bakken Saltwater Disposal Business to Tallgrass
Energy
NGL Energy Partners LP (NYSE:NGL) (“NGL”, “we”, “our”, or the “Partnership”) today announced that it has entered into a
definitive agreement to sell NGL Water Solutions Bakken, LLC to an affiliate of Tallgrass Energy, LP (NYSE:TGE) for $91.0 million
in cash proceeds. Proceeds from this transaction will be used to further reduce Partnership indebtedness. NGL’s Bakken water
operations include five saltwater disposal wells located in McKenzie and Dunn Counties, North Dakota. The Partnership has made the
strategic decision to exit the Bakken saltwater disposal business where it does not have a dominant position and focus on other
shale plays primarily in the Permian Basin. The transaction is subject to certain regulatory and other customary closing conditions
and is expected to close by the end of the calendar year.
NGL’s CEO, Mike Krimbill, stated: “The sale of our Bakken salt water disposal business advances our goal of reducing bank
leverage to less than 3.25x by Fiscal Year End. We are pruning our water disposal business to further achieve prudent capital
allocation, an increasing shift to a self-funding model and a continued focus on balance sheet strength and financial
flexibility.”
“The addition of these assets to our recently expanded portfolio in the Bakken further enhances our presence in the basin and
expands our services for our customers,” said TGE President and CEO, David G. Dehaemers Jr. “Over the past five years we have built
preeminent water services infrastructure and this acquisition further expands our position as a leading provider of midstream water
solutions in five of the nation’s most rapidly growing production regions.”
Advisor and Counsel
Raymond James & Associates, Inc. is acting as financial advisor to NGL.
Forward-Looking Statements
Certain matters contained in this Press Release include “forward-looking statements.” All statements, other than statements of
historical fact, included in this Press Release may constitute forward-looking statements. Although we believe that the
expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove
to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as
assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors
that might cause actual results to differ include, but are not limited to, the risk factors discussed from time to time in each of
our documents and reports filed with the SEC.
Readers are cautioned not to place undue reliance on any forward-looking statements contained in this Press Release, which
reflect management's opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or
publicly release the results of any revision to any forward-looking statements.
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, natural gas liquids logistics and refined
products/renewables. For further information, visit the Partnership's website at www.nglenergypartners.com.
About Tallgrass Energy
Tallgrass Energy, LP (NYSE: TGE) is a growth-oriented midstream energy infrastructure company operating across 11 states with
transportation, storage, terminal, water, gathering and processing assets that serve some of the nation's most prolific crude oil
and natural gas basins.
To learn more, please visit our website at
www.tallgrassenergy.com.
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NGL Energy Partners LP
Trey Karlovich, 918-481-1119
Executive Vice President, Chief Financial Officer
Trey.Karlovich@nglep.com
or
Linda Bridges, 918-481-1119
Senior Vice President – Finance and Treasurer
Linda.Bridges@nglep.com
or
Tallgrass Energy, LP
Investor and Financial Inquiries
Nate Lien, 913-928-6012
investor.relations@tallgrassenergylp.com
or
Media and Trade Inquiries
Phyllis Hammond, 303-763-3568
phyllis.hammond@tallgrassenergylp.com
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