Yesterday NGL Energy Partners LP announced its new partnership with E. Osterman Propane, Inc. in a move that could place NLG Energy among the top ten retail propane marketers in the country, according to a MarketWatch report. The agreement states that Osterman Propane will contribute all its assets, including cash and common units, to NLG Energy, a Delaware limited company that owns and operates vertically integrated energy business.
“NGL is pleased to have the opportunity to partner with Osterman to expand our retail propane business into the Northeast, adding more geographic balance to our asset base,” said H. Michael Krimbill, CEO of the Partnership. “The Osterman family has demonstrated confidence in NGL by accepting our common units as a significant portion of the consideration they will receive and we believe the transaction will be immediately accretive to our unitholders.”
Osterman Propane operates 20 customer service and satellite distribution locations, with aboveground storage capacity around 1.7 million gallons. Within the last year, the company sold more than 40 million gallons of propane to 80,000 customers throughout Maine, Massachusetts, New Hampshire, Connecticut, Vermont, Rhode Island and New York. As part of the agreement, Vincent J. Osterman will join NGL Energy’s board of directors and senior management team and oversee all East Coast retail propane operations. Both companies invite interested consumers and dealers to visit the partnership’s website at www.nglenergypartners.com.