TULSA, Okla. & DENVER--(BUSINESS WIRE)--NGL Energy Partners LP (NYSE:NGL) (“NGL”) and Meritage Midstream Services II, LLC (“Meritage”) announced today that the companies are forming a joint venture to develop crude oil gathering and water services infrastructure to serve oil and gas producers in Wyoming’s Powder River Basin. The joint venture will focus on crude oil and wastewater gathering pipelines, pipeline injection terminals, wastewater and solid waste disposal facilities, and fresh water supply. The joint venture plans to have access to and operate on Meritage’s dedicated acreage in the Powder River Basin.
NGL and Meritage are also committed to exploring pipeline connectivity options from the Powder River Basin in order to best serve Meritage’s and NGL’s customers. In addition, the partners will evaluate the use of NGL’s regional assets to capture optimal downstream marketing capabilities at both Cushing and the Gulf Coast markets.
“We are very excited to enter the Powder River Basin alongside Meritage Midstream. This partnership will combine NGL’s expertise in wastewater disposal and treatment, solid waste disposal and crude oil logistics with the significant land position, pipeline infrastructure, and the outstanding customer base that Meritage already has in place,” NGL CEO Mike Krimbill said.
“This joint venture will provide a complete menu of crude oil and water services to our customers in the Powder River Basin and allow us to offer cost-effective, one-stop shopping for natural gas, NGLs, crude oil, waste water, and frac water,” Meritage CEO Steve Huckaby said. “By bundling services in and around our current footprint and making additional expansions to our ability to offer downstream value, Meritage is well-positioned as the region’s premier, full-service midstream provider."
About NGL Partners LP
NGL Energy Partners LP is a Delaware limited partnership. NGL owns and operates a vertically integrated energy business with five primary segments: water solutions, crude oil logistics, NGL logistics, refined products/renewables and retail propane. www.nglenergypartners.com.
About Meritage Midstream Services II, LLC
Headquartered in Denver, Meritage Midstream Services II, LLC provides oil and gas producers with a full complement of midstream services. Capabilities include the gathering, treating, processing and handling of crude oil, natural gas, natural gas liquids, condensate and produced water. The company’s senior management team has more than 200 years of collective experience in the oil and gas midstream business. Meritage is backed by equity commitments from Riverstone Holdings LLC. Meritage’s management team also operates Meritage Midstream Services III, LP which provides midstream services to producers in Western Canada. www.meritagemidstream.com.
