American Midstream Partners LP (NYSE: AMID) announced Aug. 11 that it completed the acquisition of entities holding offshore oil gathering assets from an affiliate of DCP Midstream LLC for $13.5 million.

Denver-based American Midstream gained DCP's interest in the Main Pass Oil Gathering System. The acquisition was funded through borrowings on its revolving credit facility.

The original agreement entered on July 14 included Mobile Bay gas processing plant and Dauphin Island gathering. However, DCP notified American Midstream that a material customer would be moving its production from the Dauphin Island and Mobile Bay assets. As a result, the agreement was amended to exlcude those assets and to only include Main Pass. Additionally, the purchase price was amended to $13.5 million from $115 million.

Total consideration for the Main Pass assets equates to an adjusted EBITDA multiple of roughly 5-6 times for the next 12 months and full-year 2015.

The acquisition of the majority interest in Main Pass is expected to complement the company's existing offhsore gas gathering and transmission business in the eastern Gulf of Mexico, said Steve Bergstrom, American Midstream executive chairman, president and CEO, in a statement.

“While smaller than originally anticipated, the acquisition is consistent with our growth strategy to pursue third-party and bolt-on opportunities and we now have the ability to offer oil gathering services to offshore producers, which will allow us to more effectively compete for deepwater Gulf of Mexico production," Bergstrom said.