Golden Gate sells Hillstone to NGL

Golden Gate Capital has sold Hillstone Environmental Partners LLC to NGL Energy Partners LP for about $600 million. Hillstone provides water pipeline and disposal infrastructure solutions to the oil and gas industry with a core operational focus on the Central Delaware Basin. Tudor, Pickering, Holt & Co. and Jefferies provided financial advice to Golden Gate Capital and Hillstone on the deal with Kirkland & Ellis LLP and Nob Hill Law Group P.C. providing legal counsel.

PRESS RELEASE

SAN FRANCISCO–(BUSINESS WIRE)–Golden Gate Capital, a leading private equity investment firm, today announced it has completed the sale of Hillstone Environmental Partners LLC (“Hillstone”) to NGL Energy Partners LP (NYSE: NGL) (“NGL”) for approximately $600 million. Golden Gate Capital created Hillstone in 2015 as a de novo investment in partnership with Chief Executive Officer and Co-Founder Jay Parkinson, a former Operating Executive with Golden Gate Capital, and a best-in-class management team including Executive Vice President of Pipeline Business Development John Rivers, Chief Operating Officer C.B. Lackey, and Chief Financial Officer Daniel Huang.

Hillstone provides water pipeline and disposal infrastructure solutions to the oil and gas industry with a core operational focus on the Central Delaware Basin. Hillstone’s fully integrated water midstream platform maximizes operating efficiency, reduces costs and reduces environmental footprint for customers. Currently, Hillstone has 580,000 barrels per day of permitted disposal capacity, and a newly-built network of produced water pipelines with approximately 680,000 barrels per day of transportation capacity. Hillstone also has an additional 22 permits to develop another 660,000 barrels per day of disposal capacity.

Jay Parkinson said, “Hillstone is an excellent strategic fit with NGL’s existing footprint, and the integration of our complementary assets enhances the platform’s ability to continue providing customers with the most effective water strategies through a large, interconnected water pipeline system. Golden Gate Capital has been a valuable partner in helping us build a strong platform and we have had an outstanding relationship over the past four years. I am also very proud of our team’s phenomenal work building Hillstone into what it is today.”

Dave Thomas, a Managing Director at Golden Gate Capital, said, “We are proud to have partnered with Jay and his team to establish Hillstone as an industry-leading provider of comprehensive water infrastructure solutions to the oil and gas industry. In just four years, the company experienced impressive organic growth and structured a high-quality asset base that includes long-term contracts with investment grade E&P companies.”

Tudor, Pickering, Holt & Co. and Jefferies acted as financial advisors to Golden Gate Capital and Hillstone. Kirkland & Ellis LLP and Nob Hill Law Group, P.C. served as legal counsel to Golden Gate Capital and Hillstone.

About Golden Gate
Golden Gate Capital is a San Francisco-based private equity investment firm with over $15 billion of committed capital. The principals of Golden Gate Capital have a long and successful history of investing across a wide range of industries and transaction types, including going-privates, corporate divestitures, and recapitalizations, as well as debt and public equity investments. Notable investments sponsored by Golden Gate Capital include Active Minerals, U.S. Silica, EP Minerals, ANGUS, Cole-Parmer and Vantage Elevator Solutions. For more information, visit www.goldengatecap.com.