The equity portion is expected to be $433m and $150m will be paid in cash.
NGL CEO H Michael Krimbill said, "With our combined fleet of more than 3,000 rail cars, 18 natural gas liquids terminals from coast to coast, 3 crude oil terminals, over 90 trucks, a substantial wholesale marketing and supply network plus retail demand in excess of 140 million gallons of propane annually, we will be a full service midstream solution for gas plant and fractionation operators, crude oil producers, refiners and retailers across the country."
NGL president of Midstream Stephen D Tuttle said, "NGL will have four segments upon completion of the mergers: Water treatment, disposal , recycling and transportation Crude Oil, gathering, transportation and marketing Natural Gas Liquids transportation and marketing Retail propane The partnership will have a substantial presence in all of these segments and look to grow them at attractive multiples."
High Sierra CEO James J Burke said, "This will enable us to expand our geographic footprint and exploit the vast opportunities in the exploding water and crude oil arenas. We could not ask for a better fit between the two companies."
The merger is expected to close in early June, subject to certain conditions including approval of the merger by requisite High Sierra share holders and expiration of the Hart Scott Rodino waiting period.
High Sierra Energy operates in three business segments: crude oil gathering, transportation and marketing; water treatment, disposal, recycling and transportation; and natural gas liquids transportation and marketing.
