NGL Energy Partners LP Acquires Beckham and McCloy Ranches in Eddy and Lea Counties, New Mexico
- Acquisition of ~122,000 acres through the purchase of the Beckham and McCloy ranches, including locations for over 20 saltwater disposal wells and 11.6 million barrels of annual fresh water rights in New Mexico- Expands service offerings to producers with capabilities to provide fresh water, recycling and treatment, cuttings landfill disposal, and produced water disposal in Eddy and Lea Counties- Total cost of the acquisitions was approximately $93 million with an estimated full year run-rate Adjusted EBITDA contribution of $18 million
TULSA, Okla., Sept. 10, 2018 /PRNewswire/ -- NGL Energy Partners LP (NYSE:NGL) ("NGL," "our," or the "Partnership") announced today that it has executed the latest phase of its Delaware Basin water infrastructure strategy. NGL completed the purchase of the approximately 36,000-acre Beckham Ranch on August 31, 2018. The Beckham Ranch sits atop the Carlsbad, Capitan, and Jal Water Basins located in southeastern Lea County, New Mexico and includes approximately 9.6 million barrels of annual fresh water rights. In July 2018, the Partnership acquired the McCloy Ranch, located in Eddy and Lea Counties, New Mexico, consisting of approximately 87,000 acres of land and an associated 2 million barrels of annual water rights in the core of the Delaware Basin in southern New Mexico. These acquisitions add to the Partnership's available freshwater volumes in the Delaware Basin, which now exceed 30 million barrels annually.
"The ranch acquisitions represent our commitment to the Delaware Basin and development of oil and gas in New Mexico," stated Doug White, NGL's Executive Vice President of Water Solutions. "Our ranch investments are the foundation of our development in this major water infrastructure system which will serve oil and gas producers in the area for decades to come."
These ranch acquisitions are strategic to position the Partnership as the premier provider of a menu of services including freshwater, recycling and treatment, cuttings landfill disposal and produced water disposal in the prolific New Mexico portion of the Delaware Basin. The Partnership's approximately 122,000 acre land position (including owned, leased and surface rights) in Lea and Eddy Counties also positions the Partnership to negotiate surface use agreements with producers and utilize its expertise as one of the largest and most experienced midstream water infrastructure companies to provide safe, reliable, and low cost services to oil and gas producers in the basin. The Partnership is currently in the process of developing multiple water pipelines, including the Lea County Express Pipeline that will originate in the area of the acquired ranches and transport produced water to certain NGL water disposal facilities in Texas and New Mexico.
NGL currently operates 27 active saltwater disposal ("SWD") facilities with over one million barrels per day of disposal capacity and over a dozen approved permits in the Delaware Basin. Earlier this year, the Partnership announced the acquisition of 55 miles of pipeline rights-of-way from Pecos, Texas to the New Mexico State Line. This right of way is being utilized for the Western Express Pipeline System in Reeves County, Texas, which includes wastewater transportation pipelines ranging from 16 to 24 inches in diameter, connecting 20 of NGL's Delaware Basin SWD facilities. This portion of the Western Express system consists of approximately 750,000 barrels per day of wastewater injection and disposal capacity. The Western Express Pipeline System is being expanded into New Mexico via two 24-inch pipelines from NGL's SWDs near Loving, New Mexico to the Texas State Line. The Western Express Pipeline System is expected to ultimately consist of more than 200 miles of gathering and transportation pipelines connecting over one million barrels per day of wastewater injection capacity spanning from Loving, New Mexico to Pecos, Texas.
Forward Looking Statements
Certain matters contained in this Press Release include "forward-looking statements." All statements, other than statements of historical fact, included in this Press Release may constitute forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include, but are not limited to, the risk factors discussed from time to time in each of our documents and reports filed with the SEC.
Readers are cautioned not to place undue reliance on any forward-looking statements contained in this Press Release, which reflect management's opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements.
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: Crude Oil Logistics, Water Solutions, Liquids, and Refined Products and Renewables. NGL completed its initial public offering in May 2011. For further information, visit the Partnership's website at www.nglenergypartners.com.
NGL Water Solutions, LLC
Commercial Development
Doug White, 303-815-1010
Executive Vice President – Water Solutions
[email protected]
NGL Energy Partners LP
Investor Relations
Trey Karlovich, 918-481-1119
Chief Financial Officer and Executive Vice President
[email protected]
or
Linda Bridges, 918-481-1119
Senior Vice President - Finance and Treasurer
[email protected]
SOURCE NGL Energy Partners LP
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