UPDATE 1-NGL Energy Partners bulks up midstream offering with $693 mln buy

* Says to pay $150 million in cash

* Says equity portion about $433 mln

* Sees recommending increase in annual distribution

May 21 (Reuters) - NGL Energy Partners LP said it will buy equity interests in High Sierra Energy LP and its general partner for $693 million to add crude oil transportation and water treatment services to its offering.

NGL Energy Partners said it will pay about $433 million in common units and $150 million in cash for equity interests in the High Sierra entities.

High Sierra Energy's crude oil segment handles about 50,000 barrels (bbls) per day of crude and controls 32 pipeline injection facilities and three crude oil terminals.

The Denver, Colorado-based company's water services segment handles over 80,000 bbls of water per day.

NGL expects to recommend an increase in its annual distribution to $1.65 per share from $1.45 for the quarter ended June 30, when the deal will likely close.

Robert W Baird & Co Inc served as the financial advisor to NGL Energy Partners on the deal.

http://www.reuters.com/article/2012/05/21/ngl...3S20120521