NGL Energy Partners LP Completes the Acquisition of Gavilon's Energy Business

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TULSA, Okla.--(BUSINESS WIRE)--Dec. 2, 2013--NGL Energy Partners LP (NYSE:NGL) announced today that it has completed the previously-announced acquisition of all of the equity interests of Gavilon, LLC, the diversified midstream energy business owned by funds managed by Ospraie Management, General Atlantic and Soros Fund Management.

Gavilon principally operates integrated crude oil storage, terminal and pipeline assets located in Oklahoma, Texas and Louisiana, along with a complementary crude oil and refined products supply, marketing and logistics business (SM&L). Gavilon’s crude oil assets include a 50 percent interest in Glass Mountain Pipeline, 4.14 owned and 3.85 leased million barrels (MMbbls) of storage in Cushing, Okla., a marine terminal and nine truck terminals including more than 22 lease automatic custody transfer (LACT) units. Through its SM&L business, Gavilon also leases a network of over 200 trucks, 350 railcars and 8 barges to transport crude oil for customers. In addition, Gavilon markets and supplies refined products and natural gas liquids through a network of more than 300 distribution terminals across 39 states.

“This combination is important for NGL, adding our first major pipeline investment in addition to crude oil storage at Cushing. The Glass Mountain Pipeline is scheduled to be operational in January 2014” said H. Michael Krimbill, CEO of NGL. Greg Piper, Gavilon CEO stated, “Our employees and executive team are excited to join the NGL Energy organization. We have multiple organic projects in development and look forward to continuing to enhance and expand our energy footprint.”

NGL Energy Partners LP also announced today that it has completed the previously-announced issuance and sale of 8,110,848 of its common units to a group of institutional investors in a private placement at a price of $29.59 per unit, for aggregate proceeds of approximately $240 million. UBS Investment Bank acted as Sole Placement Agent on the offering.

In connection with the acquisition of Gavilon, UBS Investment Bank served as NGL’s exclusive financial advisor and Locke Lord LLP served as NGL’s legal counsel. Barclays served as Gavilon’s and the Sellers’ exclusive financial advisor. Jones Day and McGrath North provided legal representation for Gavilon.

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 services, crude oil logistics, NGL logistics and retail propane. NGL completed its initial public offering in May 2011. For further information, visit the Partnership’s website at

Forward-Looking Statements

This press release includes “forward-looking statements.” All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. While NGL believes its expectations as reflected in the forward-looking statements are reasonable, NGL can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings with the Securities and Exchange Commission. Other factors that could impact any forward-looking statements are those risks described in NGL’s annual report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors.” NGL undertakes no obligation to publicly update or revise any forward-looking statements except as required by law.

Source: NGL Energy Partners LP