NGL Energy Partners LP Announces New Acreage Dedication for Produced Water Transportation and Disposal in the Delaware Basin

Rhea-AI Summary

NGL Energy Partners LP (NYSE: NGL) has signed a new long-term agreement for produced water transportation, recycling, and disposal with an independent producer in the Delaware Basin. This partnership covers over 300,000 acres in New Mexico and Texas, reinforcing NGL’s commitment to its customer and enhancing its dedicated acreage portfolio to over 660,000 acres. The company operates the largest integrated network in the Delaware Basin, focusing on crude oil and natural gas production logistics.

Positive

• New long-term agreement increases dedicated acreage in the Delaware Basin to over 660,000 acres.
• Partnership enhances service capabilities using existing infrastructure and disposal capacity.

Negative

• None.

TULSA, Okla.--(BUSINESS WIRE)-- NGL Energy Partners LP (NYSE: NGL) (“NGL” or the “Partnership”) announced today that the Partnership recently signed a new long-term produced water transportation, recycling and disposal agreement with a leading, investment grade independent producer operating within the Delaware Basin. The new dedicated long-term agreement spans an area over 300,000 acres in New Mexico and Texas and includes committed produced water volumes and recycled water services. As it has with other recent dedications, the Partnership plans to leverage its existing infrastructure and significant disposal capacity to service this new contract. “We are pleased to announce this agreement with this long-standing customer as it allows us to grow with them as they continue to develop their resource and it significantly increases our dedicated acreage portfolio in the Delaware Basin to a total of more than 660,000 acres,” said Doug White, EVP of Water Solutions.

NGL owns and operates the largest integrated network of large diameter produced water pipelines, recycling facilities and disposal wells in the Delaware Basin. The Partnership’s Water Solutions segment operates in a number of the most prolific crude oil and natural gas producing areas including the Delaware Basin in New Mexico and Texas, the Midland Basin in Texas, the DJ Basin in Colorado and the Eagleford Basin in Texas.

Forward Looking Statements

Certain matters contained in this press release include “forward-looking statements.” All statements, other than statements of historical fact, included in this press release may constitute forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include, but are not limited to, the risk factors discussed from time to time in each of our documents and reports filed with the SEC.

Readers are cautioned not to place undue reliance on any forward-looking statements contained in this press release, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements.

About NGL Energy Partners LP

NGL Energy Partners LP, a Delaware limited partnership, is a diversified midstream energy company that transports, stores, markets and provides other logistics services for crude oil, natural gas liquids and other products and transports, treats and disposes of produced water generated as part of the oil and natural gas production process. For further information, visit the Partnership’s website at www.nglenergypartners.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220210005966/en/

NGL Energy Partners LP

Commercial:

Christian Holcomb, 303-815-1010

Senior Vice President & Chief Operating Officer – NGL Water Solutions

Christian.Holcomb@nglep.com

Investor Relations:

Linda Bridges, 918-481-1119

Chief Financial Officer

Linda.Bridges@nglep.com

Source: NGL Energy Partners LP

FAQ

What is the new agreement signed by NGL Energy Partners LP?

NGL signed a long-term agreement for produced water transportation, recycling, and disposal with a producer in the Delaware Basin.

How many acres does the new NGL agreement cover?

The new agreement covers over 300,000 acres in New Mexico and Texas.

What does the new NGL contract signify for its acreage portfolio?

It increases NGL's dedicated acreage portfolio in the Delaware Basin to over 660,000 acres.

What are the primary services offered under the new contract by NGL?

The primary services include produced water transportation, recycling, and disposal.