•  
  •  
  •  
  •  
  •  
  • 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.

     

    Did You Like This Article?

    Get a free subscription to Oil & Gas Financial Journal.

    Related Articles

    Egypt signs exploration agreements

    09/19/2014

    Egypt has signed oil and gas exploration deals worth $187 million with several Western companies and a Tunisian firm, according to Reuters. The agreements cover seven exploration areas.

    Juneau Energy gains acreage in East Texas Eagle Ford shale

    09/19/2014 Juneau Energy LLC, a subsidiary of Leucadia National Corp., reports the acquisition of oil and gas leases in the emerging East Texas Eagle Ford shale play, consisting of approximately 10,264 net ac...

    ExxonMobil increases Wolfcamp position in Permian Basin

    09/19/2014 Exxon Mobil Corp. has entered into a non-monetary exchange agreement with LINN Energy LLC to add 17,800 net acres in the Permian Basin to its US oil and natural gas portfolio managed by subsidiary ...

    Eos Petro to acquire Dune Energy

    09/19/2014 Dune Energy Inc. has entered into a definitive agreement with Eos Petro Inc., whereby Eos will acquire all of the outstanding shares of the company for $0.30 per share in cash pursuant to an agreem...

    Swala Energy awarded Block 44 in Zambia

    09/19/2014 East Africa-focused Swala Energy Ltd. reports that its 93%-owned subsidiary, Swala Energy (Zambia) Ltd., has been formally awarded hydrocarbon exploration rights over Block 44 in the Republic of Za...

    More Oil & Gas Financial Articles

    Egypt signs exploration agreements

    Fri, Sep 19, 2014

    Egypt has signed oil and gas exploration deals worth $187 million with several Western companies and a Tunisian firm, according to Reuters. The agreements cover seven exploration areas.

    Juneau Energy gains acreage in East Texas Eagle Ford shale

    Fri, Sep 19, 2014

    Juneau Energy LLC, a subsidiary of Leucadia National Corp., reports the acquisition of oil and gas leases in the emerging East Texas Eagle Ford shale play, consisting of approximately 10,264 net acres primarily in Brazos and Burleson counties. The acquisition closed on Sept. 17.

    ExxonMobil increases Wolfcamp position in Permian Basin

    Fri, Sep 19, 2014

    Exxon Mobil Corp. has entered into a non-monetary exchange agreement with LINN Energy LLC to add 17,800 net acres in the Permian Basin to its US oil and natural gas portfolio managed by subsidiary XTO Energy Inc.

    Eos Petro to acquire Dune Energy

    Fri, Sep 19, 2014

    Dune Energy Inc. has entered into a definitive agreement with Eos Petro Inc., whereby Eos will acquire all of the outstanding shares of the company for $0.30 per share in cash pursuant to an agreement and plan of merger dated Sept. 17.

    Swala Energy awarded Block 44 in Zambia

    Fri, Sep 19, 2014

    East Africa-focused Swala Energy Ltd. reports that its 93%-owned subsidiary, Swala Energy (Zambia) Ltd., has been formally awarded hydrocarbon exploration rights over Block 44 in the Republic of Zambia. The award of Block 44 has now been granted following ministerial consent from the Ministry of Energy in Zambia.

    Most Popular

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ