•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    American Midstream acquires offshore oil gathering assets from DCP

    American Midstream Partners LP

    American Midstream Partners LP (NYSE: AMID) has completed its acquisition of entities holding offshore oil gathering assets from an affiliate of DCP Midstream LLC.

    On July 14, the Partnership announced the execution of a purchase and sale agreement (PSA) for the acquisition from DCP of entities holding onshore natural gas processing and offshore natural gas gathering and transportation and oil gathering assets for consideration of $115 million. The assets to be acquired included the Mobile Bay gas processing plant, the Dauphin Island gathering and transmission system (DIGP), and DCP’s interest in the Main Pass Oil Gathering System (MPOG).

    Subsequent to execution of the PSA, DCP notified the Partnership that a material customer would be moving its production from DIGP and Mobile Bay. The loss of such customer’s production constituted a Material Adverse Effect (as defined in the PSA) with respect to such entities. As a result, on Aug. 11, the PSA was amended to exclude the Mobile Bay and DIGP assets and to include only the acquisition of DCP’s interest in MPOG. In addition, the purchase price was amended to $13.5 million. The acquisition closed on Aug. 11, and was funded through borrowings on the Partnership’s revolving credit facility.

    Total consideration for the MPOG assets equates to an adjusted EBITDA multiple of approximately 5.0x to 6.0x for the next 12 months and full-year 2015.

     

    Most Popular

    Related Articles

    FMC Technologies awarded subsea systems contract for Shah Deniz Stage 2

    06/23/2015 FMC Technologies Inc. has received an order from BP Exploration (Shah Deniz) Ltd. to supply subsea production systems for Well Clusters 3-5 of the Shah Deniz Stage 2 project in the Caspian Sea.

    Gastar extends closing on sale of non-core Oklahoma assets

    06/23/2015 Gastar Exploration Inc. says that the closing of its sale of certain non-core assets in Oklahoma to an undisclosed private third-party has been extended to July 6, with the same property sale effec...

    Williams rejects $48B buyout offer from Energy Transfer Equity

    06/22/2015 Williams Co. has rejected a $48 billion buyout offer from Energy Transfer Equity LP. Williams plans to explore strategic alternatives following receipt of Energy Transfer Equity’s unsolicited propo...

    Carlyle Group commits up to $500M to Magna Energy

    06/22/2015 The Carlyle Group is committing an equity line up to $500 million in Magna Energy Ltd., an upstream oil and gas company co-founded and led by two former Cairn Energy executives, Mike Watts and Jann...

    WPX Energy adds acreage in Gallup oil play

    06/22/2015

    WPX Energy has completed the purchase of another 14,300 net acres in the San Juan Basin’s Gallup oil window from an undisclosed seller for $26 million.

    Harvest secures funding, partnership for Venezuelan operations

    06/22/2015 Harvest Natural Resources Inc. says that CT Energy Holding SRL has agreed to purchase from Harvest senior secured notes, convertible notes, and warrants. Harvest will receive proceeds of $32.2 mill...

    More Oil & Gas Financial Articles

    FMC Technologies awarded subsea systems contract for Shah Deniz Stage 2

    Tue, Jun 23, 2015

    FMC Technologies Inc. has received an order from BP Exploration (Shah Deniz) Ltd. to supply subsea production systems for Well Clusters 3-5 of the Shah Deniz Stage 2 project in the Caspian Sea.

    Gastar extends closing on sale of non-core Oklahoma assets

    Tue, Jun 23, 2015

    Gastar Exploration Inc. says that the closing of its sale of certain non-core assets in Oklahoma to an undisclosed private third-party has been extended to July 6, with the same property sale effective date of April 1. 

    Williams rejects $48B buyout offer from Energy Transfer Equity

    Mon, Jun 22, 2015

    Williams Co. has rejected a $48 billion buyout offer from Energy Transfer Equity LP. Williams plans to explore strategic alternatives following receipt of Energy Transfer Equity’s unsolicited proposal to acquire Williams in an all-equity transaction at a stated per share price of $64.00. The proposal was also contingent on the termination of Williams’ pending acquisition of Williams Partners LP.

    Carlyle Group commits up to $500M to Magna Energy

    Mon, Jun 22, 2015

    The Carlyle Group is committing an equity line up to $500 million in Magna Energy Ltd., an upstream oil and gas company co-founded and led by two former Cairn Energy executives, Mike Watts and Jann Brown.

    WPX Energy adds acreage in Gallup oil play

    Mon, Jun 22, 2015

    WPX Energy has completed the purchase of another 14,300 net acres in the San Juan Basin’s Gallup oil window from an undisclosed seller for $26 million.

    OGFJ photo of the day


    Click to view slideshow

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ