The EnLink Midstream companies EnLink Midstream Partners LP (ENLK) and EnLink Midstream LLC (ENLC) announced that a subsidiary of ENLK signed a definitive agreement to acquire LPC Crude Oil Marketing LLC. LPC has crude oil gathering, transportation and marketing operations in the Permian Basin. The purchase price is about $100 million, subject to certain adjustments.
LPC currently purchases, transports and sells about 60,000 barrels per day of crude oil. The acquisition will expand EnLink’s service offerings in the Permian Basin, adding crude oil first purchasing and logistics capabilities to its natural gas gathering and processing services.
LPC’s assets include:
- 13 pipeline and refinery injection stations in the Permian Basin;
- A fleet of about 43 tractor trailers;
- Six crude oil gathering systems totaling 67 miles of pipeline; and
- An extensive crude oil first purchasing operation.
The transaction value represents a multiple of about eight times current run-rate adjusted EBITDA. EnLink expects the acquisition will generate follow-on investment opportunities that will lower the acquisition multiple over time. The transaction is subject to the satisfaction of customary closing conditions, including the receipt of applicable regulatory approvals, and is expected to close in the first quarter. After closing, LPC will operate as an indirect subsidiary of ENLK. The management team and employees of LPC will remain with EnLink.
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