TULSA — Backed by 10 acquisitions over the past two years, Tulsa-based midstream partnership NGL Energy Partners soared to No. 1 on Oklahoma Inc.
“Our objective was to put together a master limited partnership with multiple asset classes and segments,” CEO Michael Krimbill said. “That diversifies our risk. If one segment is doing well, that will offset any others that are not doing as well.”
As it turns out, demand is strong for all of NGL Energy's segments.
NGL Energy is divided into four sections in the midstream oil and natural gas sector: crude oil logistics, water treatment services, natural gas liquids logistics and retail propane.
Together, the company has 23 terminals, 4,000 rail cars, marine terminals, barges and tows.
“We can go to a producer and say we can market your crude oil, we can market your liquids and we can get rid of your dirty water,” Krimbill said. “We're a bit of a one-stop shop.
“We also wanted to be vertically integrated, taking product from the wellhead all the way to the end customers.”
Oklahoma City money manger Greg Womack said the partnership's use of multiple segments is an important part of why it has been so successful.
“They complement each other,” said Womack, president of Womack Investment Advisers Inc. “It makes for good efficiencies of scale.”
Multiple divisions also allow the partnership to grow more quickly.
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