NGL Energy Partners LP in Tulsa announced the $112 million sale of its marine fleet that consisted of 13 towboats and 25 tank barges on the Gulf Coast.
NGL used the fleet to provide waterborne transportation of refined products and crude oil for a diversified group of customers which include major oil refineries near Houston, Texas.
NGL did not reveal the identity of the buyer or buyers in the $111.65 million cash deal which involved two agreements. But the sale is expected to close at the end of the month.
“I want to thank our Marine employees for their hard work and service over the years to build one of the best fleets in the business. This non-core asset sale should allow NGL to further reduce leverage by March 31, 2023, as these proceeds will be used for debt reduction.” stated Mike Krimbill, NGL’s CEO. “Our near-term focus continues to be reducing absolute debt and leverage.” Krimbill concluded.
News of the sale prompted NGL shares to gain 10% to $3.90. Just three years ago, NGL Marine in Houston took delivery of two 2,600 hp. towboats. They were the A.M. Raymond and the Kevin Allen. The boats were used to push two 30,000-barrel barges.
BofA Securities, Inc. is serving as NGL’s financial advisor; and McAfee & Taft of Tulsa, Oklahoma is serving as NGL’s outside legal counsel.