NGL Energy Partners to buy SemGroup unit for about $282 million

TULSA, Okla. ― NGL Energy Partners LP will buy SemGroup Corp’s SemStream LP unit for about $282 million in cash and stock, plus a 7.5 percent interest in the general partner of NGL Energy, the companies said.

NGL Energy Partners said the move will expand its midstream segment from the mid-continent to the West Coast, including Washington and Arizona.

Under the deal, SemGroup will get 8.95 million common units of NGL Energy Partners and $100 million in cash in connection with the working capital acquired.

Tulsa, Oklahoma-based SemGroup, which purchases, transports, stores and distributes natural gas liquids, will also get a 7.5 percent stake in NGL’s general partner along with two board seats.

The transaction will increase the number of terminals owned by the partnership to 15 from three. The purchased business include natural gas liquids terminals in 8 states and a rail fleet of about 350 leased and 12 owned cars.

“This will position NGL to take advantage of opportunities arising from the expanding liquids rich shale plays throughout North America,” NGL Chief Operating Officer Brian Pauling said.

The deal, which is expected to add to NGL’s unitholders, is expected to close before the fourth quarter, the companies said.

The transaction is structured as a contribution of SemStream assets, excluding SemStream Arizona Propane LLC, to NGL Energy.

LCT Capital LLC acted as financial adviser to SemGroup.

NGL shares closed at closed at $20.40, while SemGroup Shares closed at $20.70 on Tuesday on the New York Stock Exchange.