IPO Filing: NGL Energy Partners LP

NGL Energy Partners LP has just filed to come public via an initial public offering.  Terms have not been disclosed at all for a share count or for a price target range other than the initial filing for up to $84,525,000 in common units that represent limited partner interests.  The company has applied to list under the ticker of “NGL” on the New York Stock Exchange.  No underwriters were named either.

This is a Delaware limited partnership formed in September 2010 to own and operate a vertically-integrated propane business.  The three segments will be retail propane, wholesale supply and marketing, and midstream.  The retail propane business sells propane to residential, agricultural, commercial and industrial customers.  The wholesale supply and marketing business supplies propane and other natural gas liquids and provides related storage to retailers, wholesalers and refiners.  The group’s midstream business is a propane terminaling business which takes delivery of propane from pipelines or trucks at its propane terminals and transfers the propane to third-party transport trucks for delivery to customers.

Its retail business has more than 56,000 residential, agricultural, commercial and industrial customers.  It markets retail propane mostly in Georgia, Illinois, Indiana and Kansas and it owns or leases 44 customer service locations and 37 satellite distribution locations with total above-ground propane storage capacity of approximately four million gallons.  The outfit also owns a fleet of bulk delivery trucks and service vehicles.

On a pro forma basis of the recently combined entities, NGL’s year-end of March 31, 2010 had revenues of $809.633 million with net income of $8.967 million.

JON C. OGG