NGL Energy Partners, a midstream MLP, said it was selling its towboats and tank barges for about $111 million. (Source: shutterstock.com)
NGL Energy Partners LP announced the signing of two definitive agreements to sell its marine assets for a total of $111.65 million cash, the company said in a March 6 press release.
The buyer of the assets wasn’t disclosed.
The company’s marine fleet consists of 13 towboats and 25 tank barges. The midstream MLP’s fleet provided waterborne transportation of refined products and crude oil for a diversified group of customers, including major oil refineries on the Gulf Coast. The transaction is expected to close at the end of this month, subject to customary closing conditions.
“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,” said NGL CEO Mike Krimbill. “Our near-term focus continues to be reducing absolute debt and leverage.”
BofA Securities, Inc. is serving as NGL’s financial adviser and McAfee & Taft of Tulsa, Oklahoma, is serving as NGL’s outside legal counsel.
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