NGL Energy Partners LP and SemGroup Corp. completed the divestiture of Glass Mountain Pipeline LLC, a 50/50 joint venture that owns a 215-mile crude oil pipeline system delivering supplies to Cushing, Okla.
The assets were sold to a fund managed by BlackRock Real Assets and Navigator Energy Services LLC for $300 million each. SemGroup's subsidiary Rose Rock Midstream LP will remain as pipeline operator for the time being, according to a Dec. 26 news release.
NGL Energy Partners plans to use the net proceeds to pay down outstanding debt. SemGroup's sale of its 50% stake is part of its capital raise plan to fund the final payment for its acquisition of Houston Fuel Oil Terminal Co.
Deutsche Bank Securities Inc. acted as financial adviser to NGL, while McGrath North served as its legal counsel for the deal.