NGL Energy Partners LP, a transporter of fuel and crude oil, surged the most since its 2011 debut after announcing a $350 million sale of a Denver company to fund
The sale of TransMontaigne GP LLC — a general management services company and general partner of Denver-based fuel-terminal owner TransMontaigne Partners LP — to ArcLight Capital Partners LLC will finance future capital spending, NGL said Friday. Shares in Oklahoma-based NGL jumped 46 percent to $13.28. TransMontaigne Partners increased 7. percent to $27.48.
"The cash infusion keeps NGL out of the debt and equity markets for at least 18 months," T.J. Schultz, a Texas-based analyst for RBC Capital Markets, wrote in a note.
NGL's Grand Mesa pipeline, which originates in Weld County and extends 550 miles into Oklahoma, is expected to begin operation by year-end and will further add cash flow, Schultz said. ArcLight, the Boston-based private equity fund, has invested more than $13.9 billion in energy assets since its inception in 2001, according to its website.