NGL Energy Partners plans High Sierra Energy merger
Tortoise Capital Resources' High Sierra Energy has signed a new deal with NGL Energy Partners.
Tortoise Capital Resources (TTO) has announced its largest portfolio company High Sierra Energy and its affiliates (HS) have entered into an agreement with NGL Energy Partners.
It is expected to close at the beginning of next month and is subject to various closing conditions, which could mean the expertise of those with negotiation skill is required.
TTO owns both General Partnership and HS Limited Partnership interests and expects that it will receive $9.2 million (£5.8 million) in cash and 1.2 million NGL units when the deal is finalised.
President of TTO Ed Russell said: "The management team at HS has done a terrific job and we believe NGL is a great partner to continue to build out its midstream strategy."
The merger will enable TTO to continue with its strategy of offering lease-based financing for pipeline, storage and power transmission assets.
HS aspires to be one of the top midstream companies in the energy industry and hopes to double its value by 2014.
Posted by David Gleck
Source: Tortoise Capital Resources press release, May 21st