•  
  •  
  •  
  •  
  •  
  • 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

    Eni secures exploration blocks in Egypt

    09/26/2014

    Eni SpA was the successful bidder of three new exploration licenses in Egypt following the competitive 2013 EGPC and EGAS bid rounds.

    BHP Billiton and Pemex to exchange deepwater expertise

    09/26/2014

    BHP Billiton and Pemex have signed a memorandum of understanding to exchange technical knowledge, information, experiences, and practices related to the oil and gas industry.

     

    Cairn farms out Catcher stake, acreage to Dyas

    09/26/2014

    Cairn Energy has entered into a farm out agreement for the sale of a 10% interest in the Catcher development and adjacent acreage in the UK North Sea to Dyas UK Ltd. 

    Lundin to acquire stake in PM328 offshore Malaysia

    09/26/2014 Lundin Petroleum AB, through its wholly owned subsidiary Lundin Malaysia BV, has entered into agreements to acquire a 50% interest in PM328, and operatorship of the block, from Petronas Carigali.

    Pioneer closes sale of Barnett shale assets

    09/26/2014 Pioneer Natural Resources Co. has closed the sale of its Barnett shale assets in North Texas to an undisclosed private party for cash proceeds of $155 million. The transaction has an effective date...

    More Oil & Gas Financial Articles

    Eni secures exploration blocks in Egypt

    Fri, Sep 26, 2014

    Eni SpA was the successful bidder of three new exploration licenses in Egypt following the competitive 2013 EGPC and EGAS bid rounds.

    BHP Billiton and Pemex to exchange deepwater expertise

    Fri, Sep 26, 2014

    BHP Billiton and Pemex have signed a memorandum of understanding to exchange technical knowledge, information, experiences, and practices related to the oil and gas industry.

     

    Cairn farms out Catcher stake, acreage to Dyas

    Fri, Sep 26, 2014

    Cairn Energy has entered into a farm out agreement for the sale of a 10% interest in the Catcher development and adjacent acreage in the UK North Sea to Dyas UK Ltd. 

    Lundin to acquire stake in PM328 offshore Malaysia

    Fri, Sep 26, 2014

    Lundin Petroleum AB, through its wholly owned subsidiary Lundin Malaysia BV, has entered into agreements to acquire a 50% interest in PM328, and operatorship of the block, from Petronas Carigali.

    Pioneer closes sale of Barnett shale assets

    Fri, Sep 26, 2014

    Pioneer Natural Resources Co. has closed the sale of its Barnett shale assets in North Texas to an undisclosed private party for cash proceeds of $155 million. The transaction has an effective date of Aug. 1.

    Most Popular

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ