Ferrellgas diversifies outside propane industry by acquiring Texas company
05/01/2014 9:45 AM
05/01/2014 3:55 PM
Ferrellgas Partners LP on Thursday announced its first large-scale expansion outside the propane industry with a $124.7 million acquisition of a Texas company that provides saltwater disposal services for the oil and gas industry.
Overland Park’s Ferrellgas purchased privately owned Sable Environmental LLC and a related company.
Founded in 2011 and based in Corpus Christi, Sable works primarily in the Eagle Ford Shale region of south Texas. The company has the capacity to dispose of 150,000 barrels of saltwater waste per day, according to its website.
“Sable is participating in a booming industry, providing a valuable service to the oil and gas industry,” Ryan VanWinkle, Ferrellgas’ executive vice president and chief financial officer, said in a statement.
As part of the acquisition, VanWinkle will assume a new position as president of the company’s midstream operations. He will oversee Sable’s operations.
VanWinkle said the Sable transaction “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 opportunities present themselves.”
Ferrellgas Partners LP serves propane customers in all 50 states, the District of Columbia and Puerto Rico.
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