Shell USA to Acquire Midstream MLP in $1.96 Billion Buyout

Shell USA agreed to acquire all remaining interests in Shell Midstream Partners held by the public at $15.85 per public common unit in cash for a total value of approximately $1.96 billion.

Hart Energy Staff
Shell USA to Acquire Midstream MLP in $1.96 Billion Buyout

Shell Midstream Partners owns, operates, develops and acquires pipeline and other midstream and logistics assets in the U.S. from its headquarters in Houston. (Source: MDart10 / Shutterstock.com)

Shell USA Inc. agreed on July 25 to acquire Shell Midstream Partners LP in a buyout transaction worth nearly $2 billion.

The transaction marks the latest MLP roll-up in the midstream space largely seen as being driven by the elimination of incentive distribution rights. Previously, the oil and gas industry had financed billions of dollars in pipeline and storage infrastructure through the use of MLPs.

Based in Houston, Shell USA is the U.S. subsidiary of global supermajor Shell Plc headquartered in London. A subsidiary of Shell USA currently owns about 269.5 million common units of Shell Midstream Partners, or roughly 68.5% of Shell Midstream Partner common units, which owns, operates, develops and acquires pipeline and other midstream and logistics assets in the U.S. from its headquarters in Houston.

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