SemGroup® Corporation contributed its SemStream®, L.P. business, except its SemStream Arizona unit, into NGL Energy Partners, L.P. in November of 2011, in exchange for the following:
- 8.93 million common units of NGL Energy Partners representing a one third stake in limited partnership
- 7.5 percent interest in the General Partner of NGL Energy Partners
- A cash payment of $100,000,000 for working capital that is subject to adjustment
- SemGroup will have two seats on the board of directors of the general partner of NGL Energy Partners
This transaction enhances SemGroup’s investment in natural gas liquids, creates additional opportunities for growth and strengthens SemGroup’s financial profile through increased earnings. The combination is expected to improve the stability of cash flow from this segment due to the fee-based structure of NGL Energy Partners’ business.
About NGL Energy Partners, L.P.
NGL Energy Partners is a Delaware limited partnership formed in September 2010 through the merger of Hicksgas and NGL Supply. The Partnership owns and operates a vertically integrated energy business with three operating segments: midstream, wholesale supply and marketing and retail propane.
For further information visit the Partnership's website at www.nglenergypartners.com.