EnLink Midstream Signs Definitive Agreement to Acquire Permian Basin Crude Oil Logistics Company
January 12 2015 - 5:00PM
Business Wire
Strategic Transaction Will Expand EnLink’s
Capabilities in Prolific Oil Producing Region of West Texas and New
Mexico
The EnLink Midstream companies, EnLink Midstream Partners, LP
(NYSE:ENLK) (the Partnership) and EnLink Midstream, LLC (NYSE:ENLC)
(the General Partner) (together “EnLink”), today announced that a
subsidiary of the Partnership has signed a definitive agreement to
acquire LPC Crude Oil Marketing LLC (“LPC”), which has crude oil
gathering, transportation and marketing operations in the Permian
Basin, for approximately $100 million, subject to certain
adjustments.
LPC currently purchases, transports and sells approximately
60,000 barrels per day of crude oil, serving as a critical link
between Permian producers and end markets. The acquisition expands
EnLink’s service offerings in the Permian Basin, adding crude oil
first purchasing and logistics capabilities to EnLink’s existing
natural gas gathering and processing services.
“The acquisition of LPC is a great example of our M&A
strategy, which is one of our four avenues of growth,” said Barry
E. Davis, EnLink Midstream President and Chief Executive Officer.
“Even with the recent decline in oil prices, we believe that the
Permian Basin will remain a core growth area for oil production.
This acquisition enhances EnLink’s ability to provide a complete
midstream solution to customers in one of the most active producing
basins in North America, and our plan is to make additional
investments expanding LPC’s business over time.
“This business comes with an experienced management team that
has built a highly respected crude oil marketing company known for
customer service and performance,” Davis added. “We are excited to
welcome LPC’s dedicated team of employees into the EnLink
family.”
LPC’s assets include:
- Thirteen pipeline and refinery
injection stations which are located in the most productive areas
of the Permian Basin;
- A fleet of approximately 43 tractor
trailers;
- Six crude oil gathering systems
totaling 67 miles of pipeline; and
- An extensive crude oil first purchasing
operation.
The transaction value represents a multiple of approximately
eight times current run-rate adjusted EBITDA. EnLink expects the
acquisition to generate follow-on investment opportunities that
will lower the acquisition multiple over time. The acquisition,
which is subject to the satisfaction of customary closing
conditions, including the receipt of applicable regulatory
approvals, is expected to close in the first quarter of 2015.
Following the closing of the transaction, LPC will operate as an
indirect subsidiary of the Partnership. The highly-skilled
management team and employees of LPC will remain with EnLink and
will provide expertise in crude oil first purchasing and
logistics.
About the EnLink Midstream Companies
EnLink Midstream is a leading midstream provider formed through
the combination of Crosstex Energy and substantially all of the
U.S. midstream assets of Devon Energy. EnLink Midstream is publicly
traded through two entities: EnLink Midstream, LLC (NYSE: ENLC),
the publicly traded general partner entity, and EnLink Midstream
Partners, LP (NYSE: ENLK), the master limited partnership.
EnLink Midstream’s assets are located in many of North America’s
premier oil and gas regions, including the Barnett Shale, Permian
Basin, Cana-Woodford Shale, Arkoma-Woodford Shale, Eagle Ford
Shale, Haynesville Shale, Gulf Coast region, Utica Shale and
Marcellus Shale. Based in Dallas, Texas, EnLink Midstream’s assets
include approximately 8,800 miles of gathering and transportation
pipelines, 13 processing plants with 3.4 billion cubic feet per day
of net processing capacity, seven fractionators with 252,000
barrels per day of net fractionation capacity, as well as barge and
rail terminals, product storage facilities, brine disposal wells,
an extensive crude oil trucking fleet and equity investments in
certain private midstream companies.
Additional information about the EnLink Midstream companies can
be found at www.EnLink.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. These statements are
based on certain assumptions made by the Partnership and the
General Partner based upon management's experience and perception
of historical trends, current conditions, expected future
developments and other factors the Partnership and the General
Partner believe are appropriate in the circumstances. These
statements include, but are not limited to, statements about future
financial and operating results, objectives, expectations and
intentions that are not historical facts. Such statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of the Partnership and the General
Partner, which may cause the Partnership's and the General
Partner’s actual results to differ materially from those implied or
expressed by the forward-looking statements. These risks include,
but are not limited to, the failure to consummate the transaction,
the risk that new assets will not be successfully integrated or
that such integration will take longer than expected, the risk that
the new assets will not perform as expected, the failure of the new
assets to generate follow-on investment opportunities, the failure
to achieve expected synergies, regulatory, economic and market
conditions and other risks discussed in the Partnership's and the
General Partner’s filings with the Securities and Exchange
Commission. The Partnership and the General Partner have no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
EnLink MidstreamJill McMillan,
214-721-9271Director of Communications and Investor
RelationsJill.McMillan@enlink.com
EnLink Midstream Partners, LP (NYSE:ENLK)
Historical Stock Chart
From Mar 2024 to Apr 2024
EnLink Midstream Partners, LP (NYSE:ENLK)
Historical Stock Chart
From Apr 2023 to Apr 2024