NGL Energy Partners Buys Oilfield Water Lines LP's Water Disposal, Hauling Unit for $168M in Cash, ~2.46M Units, Net Working Capital; Raises FY14 Adj. EBITDA Outlook

NGL Energy Partners LP

announced today that it has acquired the water disposal and hauling business of Oilfield Water Lines LP (“OWL”), a partnership with High Roller Wells and the Mark Cuban Companies for 2,463,287 common units and $168 million in cash, plus net working capital. The acquisition expands NGL's water services business by adding four high capacity, strategically located, oil and gas water disposal facilities to its portfolio of water treatment and gathering infrastructure. The acquisition brings a successful operating team to NGL's water services business and approximately 90,000 barrels per day of additional disposal capacity in the growing Eagle Ford Shale in South Texas, a major US oil producing region. The Partnership is increasing its Fiscal 2014 Adjusted EBITDA guidance from $240-$245 million to $255-$260 million as the additional assets are integrated and contribute Adjusted EBITDA for eight months in Fiscal 2014. For the full twelve months ending March 31, 2015 NGL anticipates Adjusted EBITDA from this transaction to exceed $35 million. The agreement with OWL includes a provision whereby the purchase price may be increased if certain performance targets are achieved. If the acquired assets generate Adjusted EBITDA, as defined in the agreement, in excess of $40 million on an annualized basis during any one of the six months following the acquisition, the purchase price will be increased by six times the amount by which this target is exceeded. The maximum potential increase to the purchase price under this provision is $60 million.