EnLink Midstream LLC (ENLC) dropped down its equity interests in E2 Appalachian Compression LLC and E2 Energy Services LLC to EnLink Midstream Partners LP (ENLK), ENLK announced on Oct. 22. Total consideration for the transaction is about $193 million, which includes $163 million cash and about 1 million ENLK units. ENLC intends to use most of the cash from the transaction to repay debts. This is the first dropdown from ENLC to ENLK as part of ENLK’s strategic growth strategy, the statement said.
E2’s assets include five condensate stabilization and natural gas compression stations with combined capacities of 19,000 barrels per day of condensate stabilization and 580 million cubic feet per day of gas compression. The assets are located in the Utica/Marcellus region, where EnLink Midstream plans to have invested about $700 million by the end of 2015. Three of the five E2 stations are currently operational, and the other two are expected to enter service in the first half of 2015. All of the assets are supported by a long-term, fee-based contract with Antero Resources. Once all of the assets are operational, they are expected to generate adjusted EBITDA of about $20 million to $25 million per year.
Recommended Reading
Battalion in Compliance with NYSE American after 2023 Meeting
2024-02-13 - Previously, Battalion Oil was not in compliance with the NYSE after failing to hold an annual meeting of stockholders during the fiscal year ending Dec. 31.
JMR Services, A-Plus P&A to Merge Companies
2024-03-05 - The combined organization will operate under JMR Services and aims to become the largest pure-play plug and abandonment company in the nation.
New Fortress Energy Sells Two Power Plants to Puerto Rico
2024-03-18 - New Fortress Energy sold two power plants to the Puerto Rico Electric Power Authority to provide cleaner and lower cost energy to the island.
Tellurian Executive Chairman ‘Encouraged’ by Progress
2024-03-18 - Tellurian announced new personnel assignments as the company continues to recover from a turbulent 2023.
Kissler: OPEC+ Likely to Buoy Crude Prices—At Least Somewhat
2024-03-18 - By keeping its voluntary production cuts, OPEC+ is sending a clear signal that oil prices need to be sustainable for both producers and consumers.