NGL Energy Partners has agreed to acquire Golden Gate Capital’s Hillstone Environmental Partners for approximately $600 million (€548.7 million).
Hillstone Environmental provides water pipeline and disposal infrastructure solutions to customers located in West Texas and New Mexico in the US. With the acquisition, NGL Energy plans to combine Hillstone’s services with its existing Delaware Basin platform to optimised operations services for customers.
The assets to be acquired include Hillstone’s 19 salt water disposal wells, representing around 580,000 barrels per day of permitted disposal capacity, as well as a new water pipelines system that can carry up to 680,000 barrels per day.
Hillstone is also in possession of 22 permits, which can be used to add an additional 660,000 barrels per day of disposal capacity; it also has over 110,000 acres under long-term contracts.
NGL Energy expects the acquisition to boost its water services in the Delaware Basin. Earlier this year, the company acquired New Mexico-based Mesquite Disposals Unlimited’s water pipeline transportation and disposal assets.
With both acquisitions, NGL Energy will be able to significantly increase its operations disposal capacity in the Delaware Basin to almost 2.7 million barrels per day.
POPULAR NEWS STORIES
LATEST VIDEOSmart valve sensors implemented by Vopak in the Port of Rotterdam