NGL Energy Partners gets out of the towboat and barge businessWritten by Nick Blenkey
Tulsa, Okla. headquartered NGL Energy Partners LP (NYSE:NGL) reports that it has signed two definitive agreements to sell all of its marine assets for $111.65 million in cash in the aggregate.
NGL’s marine unit has provided waterborne transportation of refined products and crude oil for a diversified group of customers that includes major oil refineries on the Gulf Coast with these assets. NGL’s marine fleet consists of 13 towboats and 25 tank barges.
The transaction is expected to close at the end of this month, subject to customary closing conditions.
“I want to thank our marine employees for their hard work and service over the years to build one of the best fleets in the business. This non-core asset sale should allow NGL to further reduce leverage by March 31, 2023, as these proceeds will be used for debt reduction.” stated Mike Krimbill, NGL’s CEO. “Our near-term focus continues to be reducing absolute debt and leverage.”
BofA Securities, Inc. is serving as NGL Energy Partners financial advisor; and McAfee & Taft of Tulsa, Oklahoma is serving as NGL’s outside legal counsel.
UPDATE: NGL did not disclose the purchaser of its tugs and barges, but Houston, Pa., based Campbell Transportation Company, Inc. (CTC) says it is the buyer of the majority of the marine assets owned by NGL Energy Partners’ NGL Marine LLC subsidiary.
You can see the full fleet listing here