NGL Energy Partners LP Announces LEX II Large Diameter Pipeline Supported by New MVC and Extension of Acreage Dedication
22 January 2024 - 10:30PM
Business Wire
NGL Energy Partners LP (NYSE:NGL) (“NGL,” or the “Partnership”)
announced today that NGL Water Solutions is commencing expansion of
its Lea County Express Pipeline System from a capacity of 140,000
barrels of water per day to 340,000 barrels per day in 2024 (LEX II
Expansion). The addition of a second large-diameter pipeline,
disposal wells, and facilities will greatly expand the capabilities
of NGL’s existing produced water super-system and create a
significantly larger outlet for produced water disposal within the
Delaware Basin. The construction of the 27-mile, 30-inch produced
water pipeline will transport water to areas outside the core of
the basin thereby further diversifying NGL’s geographic location of
its disposal operations. The LEX II Expansion is fully underwritten
by a recently executed minimum volume commitment contract that
includes an acreage dedication extension with an investment grade
oil and gas producer.
LEX II Expansion Highlights:
- 27-mile 30-inch diameter produced water pipeline
- Initial capacity 200,000 barrels per day
- Incremental increase in committed acreage and volumes under
dedication from the producer
- Lea County Express Pipeline System expandable to 500,000
barrels per day
“NGL remains focused on our commitment to deliver reliable
produced water management for our customers while remaining focused
on the environment and the sustainability of our operations,”
commented Doug White, EVP of NGL Water Solutions. “Today’s
announcement highlights our investment in the long-term future
growth and reliability of our infrastructure which provides our
customers with confidence to plan their long-term developments in
the Delaware Basin. This large minimum volume commitment provides
additional cash flow certainty to the Partnership as NGL continues
to improve its balance sheet.”
NGL owns and operates the largest integrated network of large
diameter wastewater pipelines, disposal wells and produced water
handling systems in the Delaware Basin. NGL’s Water Solutions
segment operates in several of the most prolific crude oil and
natural gas producing basins, including the Delaware, Eagle Ford
and DJ Basins.
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
forwarding-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
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240121038978/en/
Contact for Expansion Opportunities NGL Water Solutions
Christian Holcomb, 303-815-1010 Senior Vice President & Chief
Operating Officer – NGL Water Solutions
Christian.Holcomb@nglep.com
Investor Contact: NGL Energy Partners LP David Sullivan,
918-495-4631 Vice President - Finance David.Sullivan@nglep.com
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