Michael Fitzsimmons
Oil & gas, dividend investing, research analyst

ArcLight Capital Buys NGL's TLPGP - What It Means For Units Of Transmontaigne Partners LP

NGL Energy Partners LP (NYSE:NGL) announced Friday an agreement to sell TransMontaigne GP LLC ("TLPGP") for $350 million in cash. TLPGP owns the 2% general partner interest and incentive distribution rights ("IDRs") in Transmontaigne Partners LP (NYSE:TLP). The deal is expected to close by the end of the month. While the deal is an obvious win for NGL, the impact on TLP units was less clear - but also extremely bullish.

For NGL, the sale was a game-changer. Units of NGL had been under severe pressure as the collapse of NGL prices caused a drop in earnings and investor concern the LP would have to cut its substantial $2.56 annual distribution:

The $350 million in cash

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