NGL Energy Partners LP has completed a series of non-core divestitures totaling approximately $270 million, including the sale of 17 NGL terminals, its Green Bay terminal, a refined products marketing business, crude railcars, and ownership in Limestone Ranch.
The company announced the transactions in early May, stating that the proceeds will be used to pay off its Asset-Based Lending (ABL) facility fully and to support further deleveraging efforts.
“These asset sales reduce the volatility and seasonality of our adjusted EBITDA and working capital requirements,” said CEO Mike Krimbill. “The proceeds will be used to pay off the remaining ABL balance, and the excess cash will be used for additional deleveraging and addressing other parts of our capital structure.”
Asset Breakdown: What Was Sold?
The $270 million in transactions include:
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17 natural gas liquids (NGL) terminals
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NGL’s Rack Marketing refined products division
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The company’s remaining crude railcar fleet
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Limestone Ranch, a non-core upstream asset
The 17 NGL terminals and associated propane infrastructure, once a central part of NGL’s liquids logistics network, were sold to Alliance Energy Services, a fast-growing propane marketing firm based in North Kansas City, Missouri.
In a statement, Alliance Energy said the acquisition “significantly expands its infrastructure footprint” and “strengthens its ability to serve customers across key U.S. markets.”
Grand Mesa Pipeline
The divestitures fit into a multi-quarter effort by NGL to simplify its business and emphasize more predictable, fee-based midstream revenue.
In particular, the company is placing renewed emphasis on the Grand Mesa Pipeline, its flagship crude oil system serving producers in Colorado’s Denver-Julesburg Basin (DJ Basin).
The 550-mile Grand Mesa pipeline originates in Weld County, CO, and terminates at Cushing, OK, providing up to 150,000 barrels per day of crude takeaway capacity. The pipeline offers shippers access to both Midcontinent and Gulf Coast refining and trading hubs.
With previous open seasons in 2016 and 2021, the pipeline continues to attract volumes from DJ Basin producers who value its batch transport capabilities and linkages to the broader U.S. refining network.
Alliance Energy's Expansion Play
Alliance Energy Services acquired 18 propane terminals in total from NGL, further solidifying its footprint in both U.S. and Canadian markets. The terminals are located across multiple regions and will be integrated into Alliance’s network of more than 75 terminals.
“This investment underscores our commitment to enhancing supply security, expanding our market reach, and delivering best-in-class service,” said Jason Doyle, CEO of Alliance. “We also look forward to the new employees joining our team from NGL.”
The deal was backed by a sustainability-linked term loan led by Breakwall Capital LP, with Sustainable Fitch providing a second-party opinion affirming the transaction’s alignment with global sustainable finance frameworks.
About NGL Energy Partners
NGL Energy Partners LP is a diversified midstream Master Limited Partnership (MLP) involved in crude oil logistics, NGLs, and water solutions. The company offers services in transportation, storage, blending, and marketing of various energy products to producers and end-users across North America.
About Alliance Energy Services
Alliance Energy Services, one of North America’s leading propane wholesalers, markets over 600 million gallons annually from a growing terminal network. The company focuses on product procurement, logistics, and price risk management, backed by long-term partnerships with upstream gas liquids producers.
