NGL Energy Partners LP announced today it was approved by the United States Bankruptcy Court as the high bidder for certain assets of Murphy Energy Corporation. The assets include the Port Hudson, Louisiana Terminal, which is a natural gas liquids terminal that supports refined products blending, and the Kingfisher, Oklahoma Facility, which is a natural gas liquids and condensate facility. The combined purchase price of the assets is approximately $51 million and is expected to close in January 2017. These assets fit strategically within NGL’s existing Liquids and Crude Oil segments and include long-term, fee-based contracts.
“We are excited to add the Port Hudson Terminal and Kingfisher Facility to our asset base as we continue to expand our midstream presence in both the Mid-Continent and Gulf Coast regions,” said Todd Tanory, Senior Vice President of Midstream Assets.
“These assets and their fee-based revenue streams complement our existing businesses and provide opportunities to optimize our existing operations across multiple commodities,” said Jay Furman, Senior Vice President of NGL Commercial Development.
The Port Hudson Terminal is located near Baton Rouge, Louisiana, and is in proximity to other refined products infrastructure along the Colonial Pipeline. This truck unloading and storage facility allows for the aggregation and supply of butane and naphtha for motor fuel blending. The terminal consists of four truck unloading bays and eight pressurized storage tanks with total capacity of 720,000 gallons. Cash flows are supported by long-term supply contracts.
The Kingfisher Facility is a natural gas liquids and condensate facility located in Kingfisher, Oklahoma and connects to the Chisholm NGL Pipeline and the Conway Fractionation complex. The facility has multiple truck unloading stations, 450,000 gallons of storage capacity, a methanol extraction tower and a 5,000-barrel per day condensate splitter. Located in the middle of the STACK shale play, this asset is expected to directly benefit from increased drilling activity in the STACK and SCOOP plays of central Oklahoma. The facility is supplied by production from regional gas processing plants and producers. Crude oil from this facility is also expected to be delivered to Cushing via the newly announced Glass Mountain Pipeline extension into the STACK play. NGL Energy Partners LP is a fifty percent owner in Glass Mountain Pipeline.
Source: NGL Energy
Date: Dec 20, 2016