TULSA — NGL Energy Partners said Tuesday it has completed its purchase of wastewater disposal properties in the Eagle Ford field in south Texas for about $116 million in cash and stock.
The purchase of Coastal Plains Disposal #1 LLC from Texas-based WinCo Development LLC extends NGL's existing water disposal reach throughout one of the fastest-growing oil fields in the country.
“The goal is to minimize transportation costs,” said Jim Winter, senior vice president of NGL's water disposal company High Sierra Water.
“Producers will be able to utilize any of our disposal wells so they will not have to spend as much on truck transportation. We should have something close to wherever they are.”
The purchase gives NGL three disposal wells and supporting infrastructure and the option to add a fourth disposal facility that is under construction. NGL already owned eight disposal facilities in the area.
The transaction also adds 40 employees, expanding High Sierra Water's count to more than 140.
“We are excited for the opportunity to combine the Coastal Plains operations with an industry leader like NGL and look forward to continuing to provide superior service to our customers in south Texas,” Coastal Plains Vice President Andy Cunningham said in a statement Wednesday.
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