The acquisition is said to complement NGL’s existing Delaware Basin water franchise
Image: NGL Energy Partners acquired Hillstone from Golden Gate Capital. Photo: courtesy of rawpixel from Pixabay.
US-based NGL Energy Partners has closed the acquisition of Hillstone Environmental Partners from a private equity firm Golden Gate Capital.
Under the deal signed in September 2019, NGL Energy Partners LP has acquired the Hillstone Environmental Partners from Golden Gate Capital for $600m.
Hillstone provides water pipeline and disposal infrastructure solutions to producers with a core operational focus in the state line area of southern Eddy and Lea Counties, New Mexico and northern Loving County, Texas in the Delaware Basin.
The company has a fully interconnected produced water pipeline transportation and disposal system consisting of 19 saltwater disposal wells, representing nearly 580,000 barrels per day of permitted disposal capacity.
The acquisition is said to complement NGL’s existing Delaware Basin water franchise.
NGL water solutions executive vice president Doug White said: “Combined with our recent acquisition of Mesquite, we now have over 250,000 acres dedicated to our Delaware Basin water disposal system, with over 330,000 barrels per day of minimum volume commitments and an acreage weighted average remaining contract term of over 10 years.”
Contracts acquired by NGL
Under the acquisition, NGL has acquired some of the Delaware basin contracts that include 20-year Poker Lake acreage dedication, first-call rights for water disposal that covers around 70,000 acres, along with XTO Energy and an ExxonMobil subsidiary.
It also includes 10-year acreage dedication, as well as first call rights, with a major independent exploration and production company.
Additionally, the acquisition includes multiple contracts, which involve minimum volume commitments and acreage dedications, with one of the largest crude oil and natural gas exploration and production companies in the US.