For Tulsa, Okla.-based NGL Energy Partners, being a midstream horse of a different color has paid off in big ways. The company’s four energy segments include pipeline transportation, storage, blending and marketing of crude oil, NGLs, and refined products and renewables. But what sets NGL apart is its ever-growing water management systems across the Permian, Eagle Ford and DJ basins, and busy shale plays in the Texas Panhandle, East Texas, Oklahoma, and Wyoming.
NGL Energy Partners LP
We are a publicly traded Master Limited Partnership listed under the ticker symbol “NGL” on the New York Stock Exchange. NGL Energy Partners LP is a diversified midstream MLP that provides multiple services to producers and end-users, including transportation, storage, blending and marketing of crude oil, NGLs, refined products / renewables, and water solutions.
Wastewater recycling and disposal are now serious business in the nation’s oil and gas basins given water’s co-starring role with sand in order to frack. Depending on a well’s depth, rock formation and other factors, water consumption can range in the millions of gallons. In the Permian alone, fracking operations use more than 195 million gallons of water every day. And all that water must be treated, environmentally disposed of, or recycled—something NGL Energy understands well. This month, the company completed its second acquisition this year to aggressively grow its water solutions business into a formidable competitor, in some of the biggest shale plays.
A little recent history: NGL’s May acquisition of Mesquite Disposals Unlimited doubled the company’s disposal capacity to more than 2 million Bbls per day in the Delaware Basin, making NGL Energy the largest water transportation and disposal operator there. Its November acquisition of Hillstone Environmental Partners further expanded NGL’s Delaware system, which now includes 250,000 dedicated acres, 58 disposal facilities, 112 injection wells, 2.8 million BPD of disposal capacity, and 380 miles of water disposal and transportation pipelines.
In addition to its water solutions segment, NGL owns and operates the 550-mile Grand Mesa Pipeline, which transports up to 150,000 BPD of crude from the DJ Basin to the Cushing, Okla., hub. Its liquids assets include 26 terminals, a butane import/export facility, 2.8 million Bbls of underground storage, and five salt dome caverns in Utah to store up to 6 million Bbls of butane and propane. The company’s solid financial performance this year has earned NGL Energy Oklahoma’s Top Business Performer as ranked by S&P Global Market Intelligence.
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