NGL Energy (NGL) Enters $693M Merger Agreement with High Sierra Energy

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NGL Energy Partners LP (NYSE: NGL) has signed merger agreements with High Sierra Energy LP and High Sierra Energy GP, LLC (its general partner). NGL will exchange common units and contribute cash for the equity interests in the High Sierra entities. The combined consideration for the HSE entities is $693 million less assumed net debt. Based upon the expected outstanding indebtedness of the HSE entities as of closing, the equity portion is expected to be approximately $433 million and the cash portion will be approximately $150 million. Closing is anticipated in early June upon satisfaction of certain conditions including approval of the merger by requisite HSE unitholders and expiration of the Hart Scott Rodino waiting period.

NGL management anticipates recommending an increase in the annual distribution from $1.45 to $1.65 to the board of directors for the quarter ending June 30, 2012 if the transaction closes during June 2012.

Robert W. Baird & Co. Incorporated is serving as financial advisor to NGL Energy Partners in the transaction, while Winston & Strawn LLP is serving as legal counsel.

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