NGL Energy Acquires Murphy Energy Bankruptcy Key Assets for $51 Million

NGL

Tulsa-based NGL Energy Partners LP made a strategic big play when it announced Tuesday that the company paid nearly $51 million for certain assets from the Murphy Energy Corporation bankruptcy case.

“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, NGL Energy’s Senior Vice President of Midstream Assets.

Located near Baton Rouge, Louisiana, the Port Hudson Terminal is close to other refined products infrastructure along the Colonial Pipeline. This truck unloading and storage facility holds 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.

Murphy Energy was forced to file its bankruptcy petition for reorganization in early October after a purchase offer suddenly fell through and the company exhausted its cash following completion of the Port Hudson Terminal.

The natural gas liquids and condensate facility located in Kingfisher, Oklahoma was also included in NGL Energy’s winning bid. It 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 condensate splitter that generates 5,000 barrels per day.

The Kingfisher facility is highly prized due to its location in the middle of the STACK shale play, where it’s expected to directly benefit from increased drilling activity in both the STACK and SCOOP. Crude oil from the Kingfisher facility is also expected to be delivered to Cushing via the newly announced Glass Mountain Pipeline extension.

OK Energy Today reported on December 19 that Tulsa’s SemGroup Corporation and NGL Energy are joint venture partners in the 44-mile pipeline extension.

The Murphy Energy bankruptcy asset acquisitions by NGL Energy are expected to close in January 2017.

Well played, NGL Energy.

 

 

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