NGL Energy Partners has filed paperwork for an initial public offering of $84.5 million in common units, saying it plans to put the proceeds toward an outstanding loan. The company is a recently formed partnership that owns Silverthorne Operating, headed by a CEO who previously led Heritage Propane.
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 #12 dealer in the country, based on the number of gallons the company retailed last year, with 46 retailers in 29 states.
“Our goal is to expand our operating footprint, and we are presently looking to acquire quality retail propane operations as well as NGL/natural gas storage, terminaling and transportation assets,” a Silverthorne VP told LPGas this fall, following the merger of two suppliers to form Silverthorne. At the time, the company took out a $150 million loan to improve its finances.
The company has applied for listing on the New York Stock Exchange, under the symbol NGL — think natural gas liquids.
The announcement means that 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.
Read the company’s filing: here.