TULSA, Okla. & DENVER--(BUSINESS WIRE)--NGL Energy Partners LP (NYSE: NGL) (“NGL”) and DCP Midstream, LP (NYSE: DCP) (“DCP”) announced they have executed a purchase and sale agreement under which DCP will convey to NGL its wholesale propane business, generally consisting of seven natural gas liquids terminals in the Eastern United States. Under the terms of the agreement, NGL will acquire 100% ownership of five propane rail terminals operated by Gas Supply Resources, a subsidiary of DCP, and 50% ownership interest in a sixth propane rail terminal. The agreement also includes an import/export terminal located in Chesapeake, Virginia, with the capability to load or unload ships from Handy-sized vessels up to Very Large Gas Carriers.
“NGL is excited to acquire these well-operated, high-quality assets from DCP. The propane terminals complement NGL’s existing liquids portfolio and create additional opportunities for new and existing customers to supply their business. The Chesapeake asset provides strategic access to the water for imports and exports. Gas Supply Resources has an excellent reputation in the Northeast, and we look forward to inviting their talented employees to join the NGL team,” said Jeff Pinter, Executive Vice President of Liquids for NGL.
“Gas Supply Resources has been a great asset for DCP, but has no interconnectivity with our otherwise integrated value chain of midstream services,” said Wouter van Kempen, chairman, president, and CEO of DCP Midstream. “This is an outstanding opportunity to streamline our assets and fund our 2019 strategic capital program.”
The transaction has been approved by appropriate governing bodies of both companies, but remains subject to satisfaction of specified closing conditions, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
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 solutions, crude oil logistics, NGL logistics and refined products/renewables. For further information, visit the Partnership’s website at www.nglenergypartners.com.
About DCP Midstream, LP
DCP Midstream, LP (NYSE: DCP) is a Fortune 500 midstream master limited partnership headquartered in Denver, Colorado, with a diversified portfolio of gathering, processing, logistics and marketing assets. DCP is one of the largest natural gas liquids producers and marketers and one of the largest natural gas processors in the U.S. The owner of DCP’s general partner is a joint venture between Enbridge and Phillips 66. For more information, visit the DCP Midstream, LP website at www.dcpmidstream.com.
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