Sanchez Midstream Partners Sells Non-Core Production Assets in Texas; Provides Update on Midstream Activities in South Texas...
July 05 2017 - 5:45AM
Sanchez Midstream Partners LP (NYSE MKT:SNMP) (“SNMP” or the
“Partnership”) today announced that the Partnership has entered
into a definitive agreement to sell certain of its non-core,
non-operated production assets located in Texas to a private buyer
for approximately $6.3 million, subject to normal and customary
closing conditions. The sale is expected to close in the
third quarter 2017.
The sale of non-core production assets is
consistent with the Partnership’s strategy of focusing on midstream
activities currently concentrated in the Western Eagle Ford in
South Texas. The Partnership previously announced that it had
signed an agreement to divest its remaining operated Oklahoma
production assets for $5.5 million, before closing adjustments, in
a transaction that is also expected to close in the third quarter
2017.
“The sale of non-core production assets expected
this quarter comes as we continue to advance our midstream strategy
in South Texas,” said Gerry Willinger, Chief Executive Officer of
the general partner of SNMP. “In keeping with that strategy,
we are pleased to report that the Raptor Gas Processing Facility, a
50 percent joint venture with Targa Resources Corp., successfully
completed testing and start-up in June and is now fully
operational. The facility, which began receiving deliveries
from the Carnero Gathering Pipeline in June, currently has natural
gas processing capacity of 200 million cubic feet equivalent per
day (“MMcfe/d”) and is slated for expansion to 260 MMcfe/d by the
end of the third quarter 2017. With the Raptor Gas Processing
Facility fully operational, Raptor SECO Pipeline Phase 1
construction is now nearing completion. This wholly-owned dry
gas pipeline is expected to provide takeaway capacity from the
Raptor Gas Processing Facility to premium natural gas markets in
South Texas beginning later this month. These assets are
expected to provide a stable stream of fee-based cash flow
beginning in the third quarter 2017 and are key components of our
growth strategy in South Texas.”
About the PartnershipSanchez
Midstream Partners LP (NYSE MKT:SNMP) is a publicly-traded limited
partnership focused on the acquisition, development, ownership and
operation of midstream and other energy related assets. The
Partnership has ownership stakes in oil and natural gas gathering
systems, natural gas pipelines, and a natural gas processing
facility, all located in the Western Eagle Ford in South
Texas. For more information on the Partnership, please visit
our website: www.sanchezmidstream.com.
FORWARD-LOOKING STATEMENTSThis
press release contains certain statements that are considered
forward–looking statements within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934. All
statements, other than statements of historical fact, included in
this press release are forward-looking statements. Management
cautions all readers that the forward-looking statements contained
in this press release are not guarantees of future performance, and
we cannot assure any reader that such statements will be realized
or the forward-looking events and circumstances will occur.
Actual results may differ materially from those anticipated or
implied in the forward-looking statements due to factors listed in
the “Risk Factors” section in our filings with the U.S. Securities
and Exchange Commission and elsewhere in those filings. The
forward-looking statements speak only as of the date made, and
other than as required by law, we do not intend to publicly update
or revise any forward-looking statements as a result of new
information, future events or otherwise.
PARTNERSHIP CONTACT
Charles C. Ward
Chief Financial Officer
Sanchez Midstream Partners GP LLC
(877) 847-0009
General Inquiries: (877) 847-0008
www.sanchezmidstream.com
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