American Midstream Partners LP (NYSE: AMID) said April 25 it acquired interests in "strategic" midstream infrastructure in the Gulf of Mexico (GoM) for about $225 million.
The Denver-based company's acquisitions consisted of incremental ownership in Delta House, which is a semisubmersible Floating Production System in the GoM. Delta House is operated by LLOG Exploration Co. LLC.
Other acquisitions included:
- Interests in the Destin natural gas pipeline and the Tri-States and Wilprise NGL pipelines, all of which are FERC-regulated pipelines that collectively serve as a primary transport system for rich-gas production from the Eastern GoM. The Destin pipeline is supplied by Delta House and various other large Eastern GoM producing fields. The pipeline interests were acquired from an affiliate of the general partner of the partnership; and
- Majority interest in crude, natural gas, and saltwater onshore and offshore pipelines located in the GoM, including the Henry Gas Gathering System, from Chevron Corp. (NYSE: CVX).
The acquisitions were funded with preferred equity issued to an affiliate of ArcLight Capital Partners LLC and borrowings on the revolving credit facility. ArcLigh controls the general partner of American Midstream Partners.
American Midstream Partners intends to acquire an interest in another offshore natural gas pipeline from an affiliate of its general partner during the second quarter of 2016. This potential acquisition is fully funded under the current financing, the release said.
Recommended Reading
Woodside Brings in the Know-how
2024-04-01 - Woodside Energy Group CEO Meg O’Neill is relying on technical sophistication to guide the Australian giant as it takes on three challenging projects in the U.S. Gulf of Mexico.
Texas LNG Export Plant Signs Additional Offtake Deal With EQT
2024-04-23 - Glenfarne Group LLC's proposed Texas LNG export plant in Brownsville has signed an additional tolling agreement with EQT Corp. to provide natural gas liquefaction services of an additional 1.5 mtpa over 20 years.
DUG GAS+: Chesapeake in Drill-but-don’t-turn-on Mode
2024-03-28 - COO Josh Viets said Chesapeake is cutting costs and ready to take advantage once gas prices rebound.
Exxon, Vitol Execs: Marrying Upstream Assets with Global Trading Prowess
2024-03-24 - Global commodities trading house Vitol likes exposure to the U.S. upstream space—while supermajor producer Exxon Mobil is digging deeper into its trading business, executives said at CERAWeek by S&P Global.
The OGInterview: TG Natural Resources Rides LNG Wave
2024-03-01 - TG Natural Resources rides the LNG wave with its Rockcliff deal amid a shale consolidation boom.