Morgan Stanley Infrastructure Enters into Partnership with Respect to Strategic US Midstream Asset
September 16 2014 - 6:00AM
Business Wire
Morgan Stanley Infrastructure, the dedicated infrastructure
investing platform of Morgan Stanley, announced today an agreement
to acquire in stages co-control ownership of Eureka Hunter
Holdings, LLC, a natural gas gathering system situated in the
Marcellus and Utica shale basins in the Appalachian region of the
United States.
Upon completion of all stages of the transaction, Morgan Stanley
Infrastructure will have co-control governance and economic
interest in Eureka Hunter along with Magnum Hunter Resources
Corporation (NYSE: MHR), the other co-control owner of Eureka
Hunter and one of Eureka Hunter’s anchor customers. Additionally,
Morgan Stanley Infrastructure will begin a broader partnership with
management at Eureka Hunter and Magnum Hunter aimed at expanding
operations, growing the customer base, and securing additional
build-out opportunities.
The Eureka Hunter gas gathering system uses a network of
pipelines to transport dry and wet gas from wellheads to long-haul
pipelines and processing plants. The system currently has more than
100 miles of pipeline in Ohio and West Virginia with
interconnections to multiple processing plants and interstate
pipelines. There are more than 50 additional miles under
construction, most of which is scheduled for completion in
2014.
The transaction, which was concluded with Magnum Hunter and the
seller of the initial stake, Ridgeline Midstream Holdings, LLC, a
portfolio company of ArcLight Capital Partners, LLC, includes a
restructuring of the capital structure of Eureka Hunter, including
the elimination of an early-stage preference share instrument, in
order to better position the company for future growth.
Negotiations with Magnum Hunter were conducted on an exclusive
basis.
Morgan Stanley Infrastructure (MSI) is a leading global
infrastructure investment platform. MSI employs a value-creation
investment strategy and through an established, disciplined
process, seeks to invest in diverse infrastructure assets in
predominantly OECD countries. MSI's team, one of the largest in the
industry, is based in New York, London, Melbourne, Hong Kong,
Amsterdam, and Mumbai. Team members possess considerable knowledge
and experience with respect to investing in and managing
infrastructure assets and leverage their own senior-level
relationships as well as the unparalleled global network of Morgan
Stanley to source investment opportunities. MSI is part of Morgan
Stanley Merchant Banking & Real Estate Investing.
Morgan Stanley Merchant Banking & Real Estate Investing
(MB&REI) is the Firm’s direct private investing group that puts
capital to work on behalf of a diverse client base, including
governments, institutions, corporations, and individuals worldwide.
MB&REI employs a consistent, proven value-creation approach
across a full range of strategies, including private equity, real
assets, and credit. From 22 locations around the world, over 400
experienced professionals with extensive private markets expertise
and access to Morgan Stanley’s global franchise provide an
unparalleled network to source investment intelligence and
opportunities. MB&REI’s deep resources include best-in-class
reporting, operations, and risk management, providing investors
with a comprehensive approach to disciplined investing.
Morgan Stanley (NYSE: MS) is a leading global financial services
firm providing investment banking, securities, investment
management and wealth management services. With offices in more
than 43 countries, the Firm's employees serve clients worldwide
including corporations, governments, institutions and individuals.
For further information about Morgan Stanley, please
visit www.morganstanley.com.
Morgan Stanley InfrastructureMatt Burkhard, 212-761-2444Media
Relations
Morgan Stanley (NYSE:MS)
Historical Stock Chart
From Apr 2024 to May 2024
Morgan Stanley (NYSE:MS)
Historical Stock Chart
From May 2023 to May 2024