Energy company NGL soars following completion of $270 million sale of non-essential assets
Rewritten Article:
Swinging up by 7.9% in Monday's trading, NGL Energy Partners (NYSE: NGL) is making waves after they officially closed multiple asset sales, including the previously disclosed sale of 17 of its natural gas liquids terminals and the Green Bay terminal.
It's clear that NGL isn't messing around. In an effort to overhaul its portfolio and solidify its financial standing, they've unloaded 18 propane terminals to Alliance Energy Services. This move beefs up Alliance's propane supply and logistics operations across various U.S. regions[1][2]. On top of the propane terminals, NGL also said goodbye to 17 of its natural gas liquids terminals — part of previously announced sales[4].
To top it off, they tossed in the sale of their Rack Marketing refined products business, their Limestone Ranch ownership, and the remainder of their crude rail car fleet[4].
The aggregate earnings from these asset sales, estimated to be around $270 million for the sale of specific non-core assets, will be funneled in two directions[1]. First, they'll wipe out the outstanding accounts receivable and payables financing (ABL) balance. Second, any leftover dough will go towards additional deleveraging and enhancing other segments of NGL's capital structure[4].
These strategic moves aim to reduce the rollercoaster ride of NGL's Adjusted EBITDA and working capital needs[4]. In simple terms, it's time for this energy giant to smooth things out and make their financial ride more predictable! 🎢📈🚀
- On Monday, NGL Energy Partners (NYSE: NGL), which is active in the energy industry, experienced a surge of 7.9%, indicating a positive impact on the finance sector.
- The company made headlines on Monday by officially concluding multiple asset sales, including the disposal of 17 natural gas liquids terminals, the Green Bay terminal, and 18 propane terminals to Alliance Energy Services.
- The proceeds from the asset sales, estimated to be approximately $270 million from the sale of specific non-core assets, will be used by NGL Energy Partners to pay off outstanding accounts receivable and payables financing, as well as for additional deleveraging and enhancing other segments of their capital structure.
- By executing these strategic asset sales, NGL Energy Partners aims to reduce the volatility of its Adjusted EBITDA and working capital needs, ultimately making their financial performance more predictable.
