This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

NGL Energy Partners LP Announces Completion Of SemStream LP Transaction

Stocks in this article: NGL

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs