American Midstream closes Eagle Ford acquisition

American Midstream Partners LP

American Midstream Partners LP (NYSE: AMID) has completed the acquisition of a 120-mile natural gas gathering and redelivery system located in the oil window of the Eagle Ford shale play from a subsidiary of Penn Virginia Corp. (NYSE: PVA).

The acquisition includes a long-term, fee-based gathering agreement, whereby Penn Virginia dedicated for 25 years all current and future natural gas production from the areas served by the system. The system is flowing more than 40 million cubic feet per day between sales volumes and gas lift, with a significant ramp in volumes expected throughout 2014 and thereafter. Production gathered by the system is compressed and delivered to a third party for processing or redelivered to Penn Virginia for gas lift.

Penn Virginia is operating six to seven rigs on the system with nearly 900 remaining drilling locations in the acreage dedicated to American Midstream, and volumes are expected to triple from current operating levels by mid-2015.

The acquisition is expected to be accretive to American Midstream’s expected distribution level for 2014, and it creates a competitive position in a strategic shale play with fee-based contracts that are not directly subject to commodity price volatility.

 

Related Articles

American Midstream holds public offering of common units

01/23/2014

American Midstream Partners LP has begun an underwritten public offering of 3.4 million of its common units representing limited partner interests. 

Penn Virginia promotes Brooks to COO

12/17/2013 John A. Brooks, currently executive vice president of operations at Penn Virginia Corp. (NYSE:PVA), has been promoted to the position of executive vice president and chief operating officer, effect...

Penn Virginia sells Eagle Ford natural gas midstream assets for $100M

12/16/2013 Penn Virginia Corp. (NYSE:PVA) has agreed to sell substantially all of its Eagle Ford Shale natural gas midstream assets to a newly-formed affiliate of ArcLight Capital Partners LLC for gross cash ...

Magnum Hunter sells Eagle Ford Shale assets to Penn Virginia

04/03/2013 Penn Virginia Corp. (NYSE: PVA) entered into a definitive agreement with Magnum Hunter Resources Corp. (NYSE: MHR) to acquire producing properties and undeveloped leasehold interests in the Eagle F...

Penn Virginia expands in Eagle Ford

12/21/2011

Penn Virginia Corp. said December 20 that it completed an agreement with an undisclosed major oil and gas company to jointly explore the Eagle Ford Shale in Lavaca County, Texas.

 

More Oil & Gas Financial Articles

American Midstream holds public offering of common units

Thu, Jan 23, 2014

American Midstream Partners LP has begun an underwritten public offering of 3.4 million of its common units representing limited partner interests. 

Penn Virginia promotes Brooks to COO

Tue, Dec 17, 2013

John A. Brooks, currently executive vice president of operations at Penn Virginia Corp. (NYSE:PVA), has been promoted to the position of executive vice president and chief operating officer, effective January 1, 2014.

Penn Virginia sells Eagle Ford natural gas midstream assets for $100M

Mon, Dec 16, 2013

Penn Virginia Corp. (NYSE:PVA) has agreed to sell substantially all of its Eagle Ford Shale natural gas midstream assets to a newly-formed affiliate of ArcLight Capital Partners LLC for gross cash proceeds of $100 million.

Magnum Hunter sells Eagle Ford Shale assets to Penn Virginia

Wed, Apr 3, 2013

Penn Virginia Corp. (NYSE: PVA) entered into a definitive agreement with Magnum Hunter Resources Corp. (NYSE: MHR) to acquire producing properties and undeveloped leasehold interests in the Eagle Ford Shale play for approximately $400 million.

Penn Virginia expands in Eagle Ford

Wed, Dec 21, 2011

Penn Virginia Corp. said December 20 that it completed an agreement with an undisclosed major oil and gas company to jointly explore the Eagle Ford Shale in Lavaca County, Texas.

 

Most Popular

Oil & Gas Jobs

Search More Job Listings >>
Subscribe to OGFJ