NGL Energy to acquire Morgan Stanley TransMontaigne stake

NGL Energy Partners has agreed to acquire Morgan Stanley’s ownership stake in US-based oil storage firm TransMontaigne for $200m.

The acquisition will include Morgan Stanley’s general partner and limited partner interests in TransMontaigne Partners, as well as related physical inventory. NGL Energy will also assume Morgan Stanley’s obligations under several terminal storage contracts.

Based in Denver, Colorado, TransMontaigne Partners offers terminaling, storage, transportation and related services for firms engaged in the distribution and marketing of light refined petroleum products, heavy refined petroleum products, crude oil and several other sectors.

The company has operations along the Gulf Coast, in the Midwest, in Brownsville, Texas, and the Mississippi and Ohio River as well as in the Southeastern US.

Morgan Stanley institutional securities president Colm Kelleher said: "Following this transaction, Morgan Stanley’s leading commodities division will be leaner, more client-focused and better-aligned with the rest of the firm’s businesses."

LCT Capital and UBS Investment Bank are serving as NGL’s financial advisors on the transaction, which is expected to be completed in the third quarter of the year.

NGL Energy serves customers at several points along the crude oil and natural gas liquids supply chain, water treatment and retail propane industries.