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NGL Energy Partners to divest Bakken saltwater disposal business to Tallgrass

NGL Energy Partners LP agreed to sell its saltwater disposal business in the Bakken Shale to an affiliate of Tallgrass Energy LP for $91.0 million.

NGL Water Solutions Bakken LLC operates five saltwater disposal wells in McKenzie and Dunn counties in North Dakota. NGL Energy Partners decided to sell the assets as it does not have a dominant position in the Bakken saltwater disposal business, and plans to focus its operations on the Permian Basin, according to a Nov. 12 news release.

Tallgrass' acquisition augments its services for customers in its "recently expanded portfolio" in the Bakken, according to Tallgrass President and CEO David Dehaemers Jr. Tallgrass' midstream energy assets are located across 11 states.

NGL Energy Partners plans to use the proceeds from the sale to pay down debt. The deal is scheduled to close by the end of the calendar year. Raymond James & Associates Inc. is acting as financial adviser to the partnership, whose primary businesses are water solutions, crude oil and NGL logistics, and refined products and renewables.