This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

NGL Energy Partners LP Announces Completion Of SemStream LP Transaction

NGL Energy Partners LP (NYSE: NGL) announced today that it has completed the previously announced contribution of substantially all of the assets comprising the natural gas liquids operations of SemStream, L.P. (“SemStream”), a subsidiary of SemGroup Corporation (NYSE: SEMG), to NGL.

Stephen Tuttle, President of the Midstream Division, stated, “Closing this transaction with SemStream significantly expands our Midstream footprint from the Mid-Continent to the West Coast, including Washington and Arizona.”

In connection with the transaction, SemStream contributed substantially all of its natural gas liquids business and assets to NGL in exchange for 8,932,031 common units of NGL Energy Partners LP, a 7.5% interest in NGL’s general partner, NGL Energy Holdings LLC, and a cash payment of up to $100 million. The assets comprise 12 natural gas liquids terminals in Arizona, Arkansas, Indiana, Minnesota, Missouri, Montana, Washington and Wisconsin, 12 million gallons of above ground propane storage, 3.7 million barrels of underground leased storage for natural gas liquids and a rail fleet of approximately 350 leased and 12 owned cars and approximately $100 million of natural gas liquids inventory.

“These assets generate fee-based revenues and complement our wholesale supply and marketing business,” said Brian Pauling, Chief Operating Officer of the Midstream Division. “They provide balance between our business segments and continue the geographic expansion of our operation. NGL is now positioned to take advantage of opportunities arising from the expanding liquids-rich shale plays throughout North America.”

In addition, SemStream was granted the right to appoint two members to the Board of Directors of NGL's general partner. Norman J. Szydlowski, President and Chief Executive Officer of SemGroup Corporation, and Kevin Clement, President of SemStream, will serve on the Board. “We look forward to Norm and Kevin joining our Board. They both bring many years of experience in the energy business and will make excellent Directors,” said NGL’s Chief Executive Officer, Michael Krimbill.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs