Ferrellgas to Establish Midstream Division With Agreement to Acquire Sable Environmental; Purchase Demonstrates Partnership's...
May 01 2014 - 8:12AM
Ferrellgas Partners, L.P. (NYSE:FGP), one of the nation's largest
distributors of propane, today announced the entry into definitive
agreements to acquire Sable Environmental, LLC and a related entity
("Sable") for $124.7 million. Sable is a privately held,
fast-growing fluid logistics provider in the Eagle Ford Shale
region of south Texas.
Ferrellgas President and Chief Executive Officer Steve Wambold
explained, "We are extremely pleased to announce yet another step
toward strategic diversification and growth of cash flows by
targeting complementary assets outside the propane space. Sable
will provide a new platform for growth, both organically and
through acquisition, and we anticipate its existing operations will
contribute $20 million of annual Adjusted EBITDA, or $0.11 of
accretion to distributable cash flow per common unit."
Subsequent to the closing of the acquisition, Sable's ownership
group will continue to operate and drive the growth in these
operations with Sable employees joining the Ferrellgas team.
Sable's ownership group will purchase $50 million of the
partnership's common units signifying their confidence in the value
of their operations and in the partnership's strategic
direction.
Ferrellgas also announced that Executive Vice President and
Chief Financial Officer Ryan VanWinkle will additionally assume the
newly created position of President, Midstream Operations. Sable
will report to Mr. VanWinkle.
VanWinkle commented, "Sable is participating in a booming
industry, providing a valuable service to the oil and gas industry.
With an impressive track record, the Sable team has a number of
accretive projects in the works and we are excited by the
opportunities they afford us." VanWinkle concluded, "This marks our
first material acquisition outside the propane space and it is our
intent to continue to expand our business both inside and outside
our core propane operations as accretive opportunities present
themselves. While this acquisition itself provides opportunity for
organic growth, the deal pipeline for M&A is very strong and
thus we look forward to further opportunities in the near future."
Earlier this year Ferrellgas named Todd Soiefer to the newly
created position of Senior Vice President of Strategic Development
to lead the partnership's diversification initiative. Previously,
Soiefer worked at RBC Capital Markets as Director Energy Investment
Banking, playing a key role on the MLP coverage team, as well as
advising clients on a wide range of investment banking
activities.
Evercore Partners acted as financial advisor to Ferrellgas.
About Ferrellgas
Ferrellgas Partners, L.P., through its operating partnership
Ferrellgas L.P. and subsidiaries, serves propane customers in all
50 states, the District of Columbia and Puerto Rico and provides
midstream services to major energy companies in the United States.
Ferrellgas employees indirectly own more than 21 million common
units of the partnership through an employee stock ownership plan.
More information about the partnership can be found online at
www.ferrellgas.com.
Forward-Looking Statements
Statements in this release concerning expectations for the
future are forward-looking statements. A variety of known and
unknown risks, uncertainties and other factors could cause results,
performance and expectations to differ materially from anticipated
results, performance and expectations. These risks, uncertainties
and other factors are discussed in the Form 10-K of Ferrellgas
Partners, L.P., Ferrellgas Partners Finance Corp., Ferrellgas,
L.P., and Ferrellgas Finance Corp. for the fiscal year ended July
31, 2013, and other documents filed from time to time by these
entities with the Securities and Exchange Commission.
CONTACT: Alan Heitmann, Investor Relations, (816) 792-6879
Scott Brockelmeyer, Media Relations, (913) 661-1830
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