Company News

UPDATE 1-NGL Energy looking to expand Delaware Basin water business -CEO

(Adds background on water business, CEO comments)

HOUSTON, Aug 8 (Reuters) - U.S. pipeline operator NGL Energy Partners LP is looking to expand its position in its growing water solutions business in the Delaware Basin, and sees one or two attractive assets remaining in the largest U.S. oil field, Chief Executive Mike Krimbill said on Thursday.

The Tulsa, Oklahoma-based company will participate in any sale processes initiated for those water assets but does not plan to start “a buying spree” in the water segment, Krimbill said in a call with investors.

NGL Energy spent about $200 million in capital expenditures on its water solutions business earlier this year, and processed about 849,0000 barrels of wastewater per day in the quarter ended in June, the company’s first quarter of fiscal 2020.

The water business generated about $41.1 million in pre-tax earnings. The company reported a quarterly loss of 96 cents per common unit.

“We see a wall of water coming at the end of September,” Krimbill said, though the company has not provided guidance on water volumes for coming months. “We’re expecting very significant ramp through the last half of the year.” (Reporting by Collin Eaton in Houston Editing by Bill Trott and Paul Simao)