By Tess Stynes
EnLink Midstream Partners LP and affiliate Enlink Midstream LLC
agreed to acquire Coronado Midstream Holdings LLC for roughly $600
million, the latest in a string of acquisitions.
The acquisition includes natural-gas gathering and processing
facilities in the Permian Basin and will expand Enlink's presence
in West Texas.
EnLink Chief Executive Barry E. Davis said "In just over four
months, we have announced approximately $1 billion of acquisitions,
which is consistent with our growth strategy to expand our platform
in key producing areas."
Under the deal, Coronado's owners will receive $240 million in
cash, $180 million of EnLink Midstream Partners common units and
$180 million of a new class of EnLink Midstream Partners units.
The new class of units, which will be eligible to receive the
same level of distributions as the current units, will convert into
the current class after five quarters of distributions have been
paid following the closing of the transaction.
Coronado operates three gas processing plants and a gas
gathering system in the North Midland Basin including approximately
270 miles of gathering pipelines. Construction is under way on an
expansion of its processing and gathering capacity.
Coronado's key producer customers include Reliance Energy Inc.,
Diamondback Energy Inc. and RSP Permian Inc. Reliance is currently
the largest owner of Coronado, with affiliates of both Diamondback
and RSP Permian owning the rest of the company.
Write to Tess Stynes at tess.stynes@wsj.com
Access Investor Kit for Devon Energy Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US25179M1036
Access Investor Kit for EnLink Midstream Partners LP
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US29336U1079
Subscribe to WSJ: http://online.wsj.com?mod=djnwires