NGL Energy Partners Announces Details on IPO

NGL Energy said it's IPO on the NYSE could be for 3.5 million units. (image: gaIleryquantum via flickr.com)

In February, the propane supplier NGL Energy Partners filed paperwork for an initial public offering of $84.5 million in common units. Now the company has put out some more of the details, the Wall Street Journal reported last night.

NGL Energy, a recently formed partnership that controls the retailer Silverthorne, estimated the IPO’s size would be 3.5 million units, to be priced between $19 and $21 a unit. It plans to pay an annual distribution of $1.35 a unit.

The company has plans to put the proceeds towards an outstanding loan. It has applied for listing on the New York Stock Exchange under the symbol NGL — think natural gas liquids.

NGL Energy is a vertically-integrated supplier with three irons in the propane flame: retail, wholesale, and midstream. According to the latest rankings from LPGas Magazine, Silverthorne is the No. 12 dealer in the country based on the number of gallons the company retailed last year, with 46 dealers in 29 states. Wholesale operations account for the majority of the company’s sales.

Formed in September, NGL Energy will be the upstart among the other propane retailers on the exchange. Only the country’s top five are publicly held: AmeriGas (56-percent owned by public shareholders), Ferrellgas, Heritage, Inergy LP, and Suburban Propane.