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NGL Energy Partners completes $93M ranch land acquisition


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NGL Energy Partners completes $93M ranch land acquisition

NGL Energy Partners LP said Sept. 10 that it has completed the $93 million acquisition of approximately 122,000 acres of land in New Mexico as part of the latest phase of its Delaware Basin water infrastructure strategy.

The partnership said that it completed the acquisition of the 36,000-acre Beckham ranch in southeastern Lea County on Aug. 31, bringing in 9.6 million barrels of annual fresh water rights that compliment the procurement of the 87,000-acre McCloy ranch located in the Eddy and Lea Counties in July, which brought in an additional 2 MMbbl of annual water rights into its portfolio.

The partnership said the acquisitions bring its available freshwater volumes in the Delaware Basin above 30 MMbbl and have an estimated full-year run-rate adjusted EBITDA contribution of $18 million.

"The ranch acquisitions represent our commitment to the Delaware Basin and development of oil and gas in New Mexico," said Doug White, executive vice president of water solutions.

In addition, the partnership said it is developing multiple water pipelines, including the Lea County Express Pipeline, to transport produced water from the acquired ranges certain NGL water disposal facilities in Texas and New Mexico.

The partnership currently operates 27 active saltwater disposal facilities with more than 1 MMbbl/d of disposal capacity in the Delaware Basin.