NGL Energy Partners LP and Grand Mesa Pipeline, LLC , a wholly-owned subsidiary of NGL , announced Monday that Grand Mesa has entered into a settlement agreement with Colorado’s Extraction Oil and Gas, Inc. as it relates to XOG’s bankruptcy proceedings.
XOG, considered to be one of Colorado’s major producers filed Chapter 11 bankruptcy in June listing $1.7 billion in long-term debt.
The settlement came as Tulsa-based NGL and Extraction entered into a new term supply agreement. As a result, Extraction’s crude volumes will continue to be shipped via the Grand Mesa Pipeline. In turn, Grand Mesa will receive an allowed unsecured claim which it expects to liquidate for cash proceeds..
As part of the settlement, Grand Mesa will also support confirmation of XOG’s bankruptcy plan. Grand Mesa will also withdraw its previously filed objection of the plan and pending appeals.
The agreements between XOG, NGL and Grand Mesa as described remain subject to approval by the Bankruptcy Court , among other conditions.
Source: NGL Energy
