OPIS reported on Nov. 7 that Gavilon offers synergistic value with its crude and NGL marketing and storage operations, NGL Energy, a predominantly midstream company, will be able to expand to the downstream wholesale fuel market for the first time.

Gavilon principally operates integrated crude oil storage, terminal and pipeline assets located in Oklahoma, Texas and Louisiana, along with a complementary crude oil and refined products supply, marketing and logistics business (SM&L). Gavilon’s crude oil assets include a 50% interest in Glass Mountain Pipeline, 4.14 million owned and 3.85 million leased barrels of storage in Cushing, Okla., a marine terminal and nine truck terminals including more than 22 lease automatic custody transfer (LACT) units.

Through its SM&L business, Gavilon also leases a network of over 200 trucks, 350 railcars and eight barges to transport crude oil for customers. In addition, Gavilon markets and supplies refined products and natural gas liquids through a network of more than 300 distribution terminals across 39 states.

“This combination is important for NGL, adding our first major pipeline investment in addition to crude oil storage at Cushing. The Glass Mountain Pipeline is scheduled to be operational in January 2014,” said H. Michael Krimbill, CEO of NGL. Greg Piper, Gavilon CEO, stated, “Our employees and executive team are excited to join the NGL organization. We have multiple organic projects in development and look forward to continuing to enhance and expand our energy footprint.”

NGL Energy Partners LP also announced today that it has completed the previously announced issuance and sale of 8,110,848 of its common units to a group of institutional investors in a private placement at a price of $29.59 per unit, for aggregate proceeds of approximately $240 million. UBS Investment Bank acted as sole placement agent on the offering. Andrews Kurth LLP provided legal representation for NGL on the offering.