Haynes and Boone, LLP advised client High Roller Wells in connection with the just-announced $239.2 million sale by Oilfield Water Lines LP (“OWL”) of its saltwater disposal wells and saltwater hauling business to Tulsa energy transport and propane marketer NGL Energy Partners LP (NYSE:NGL). OWL is a partnership involving High Roller Wells LLC and the Mark Cuban Companies.
The representation of High Roller Wells, led by Dallas Partner Darrel Rice, involved a transaction for the sale of the OWL business in exchange for 2,463,287 common limited partnership units of NGL worth about $71.2 million and $168 million in cash, plus net working capital. The final sale amount could rise by about $60 million if the purchased businesses attain certain Adjusted EBITDA performance targets.
The Haynes and Boone team advising High Roller Wells, included, in addition to Rice, Fort Worth Partner Brandon Jones, Dallas Of Counsel Mike Cooper, Dallas Associates Mike Dill, Rosebud Manning and Lauren Waite, and Richardson Associate Christina Marshall.
This transaction will increase the number of saltwater disposal wells owned by NGL in the Eagle Ford from six to ten, providing disposal service to producers throughout the area. The acquisition brings a successful operating team to NGL’s water services business and approximately 90,000 barrels per day of additional disposal capacity.
