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Golden Gate Capital completes sale of water pipeline company Hillstone Environmental

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Private equity investment firm Golden Gate Capital has completed the sale of Hillstone Environmental Partners to NGL Energy Partners, for approximately $600 million (€539 million).

Hillstone, which provides water pipeline and disposal infrastructure solutions to the oil and gas industry, was created by Golden Gate Capital in 2015 as a de novo investment, in partnership with CEO and co-founder Jay Parkinson.

With an operational focus on the US Central Delaware Basin, Hillstone’s fully integrated water midstream platform maximises operating efficiency, reduces costs and limits the environmental footprint for customers.

The company currently has 580,000 barrels per day of permitted disposal capacity, in addition to a newly-constructed network of produced water pipelines with around 680,000 barrels per day of transport capacity. Hillstone has an additional 22 permits to develop another 660,000 barrels per day of disposal capacity.

“Hillstone is an excellent strategic fit with NGL’s existing footprint, and the integration of our complementary assets enhances the platform’s ability to continue providing customers with the most effective water strategies through a large, interconnected water pipeline system,” commented Parkinson. “Golden Gate Capital has been a valuable partner in helping us build a strong platform and we have had an outstanding relationship over the past four years. I am also very proud of our team’s phenomenal work building Hillstone into what it is today.”

Dave Thomas, a managing director at Golden Gate Capital, added: “We are proud to have partnered with Jay and his team to establish Hillstone as an industry-leading provider of comprehensive water infrastructure solutions to the oil and gas industry. In just four years, the company experienced impressive organic growth and structured a high-quality asset base that includes long-term contracts with investment grade E&P companies.”