American Midstream Partners LP has agreed to acquire certain assets of Southcross Holdings LP and merge Southcross Energy Partners LP into a wholly owned subsidiary in two separate deals valued at 815 million U.S. dollars, including the repayment of net debt.
The moves create a South Texas-focused partnership with an enterprise value of 3 billion dollars, Oil&Gas Journal reported Wednesday.
American Midstream said the deals accelerate its transformation into an integrated natural gas gathering, processing, and transmission partnership while building full value chain participation in gathering, treating, processing, fractionation, and Natural gas liquids (NGL) and gas marketing.
Southcross Energy's assets are in South Texas, Mississippi, and Alabama and include 3,100 miles (about 5,000 km) of pipeline. Its integrated South Texas system consists of 2,000 miles (about 3,200 km) and 500 million cubic feet (14 million cubic meters) a day of processing capacity from the Lone Star and Woodsboro cryogenic plants.
Southcross Holdings' indirectly owned assets, which are concentrated in South Texas, encompass a gas gathering system, an NGL system and the Robstown fractionator.
The South Texas facilities serve increasing regional demand for Eagle Ford production from new and expanding petrochemical complexes, LNG export projects, and exports to Mexico, as well as growing industrial demand along the U.S. Gulf Coast, American Midstream said.
Upon completion of the deals, American Midstream will strengthen its midstream infrastructure. The deals are expected to close in next year's second quarter.
American Midstream Partners LP is a limited partnership formed to provide midstream infrastructure that links producers of natural gas, crude oil, NGL, condensate and specialty chemicals to end-use markets. It owns the third largest cylinder exchange business and one of the largest regional retail propane providers.
The moves create a South Texas-focused partnership with an enterprise value of 3 billion dollars, Oil&Gas Journal reported Wednesday.
American Midstream said the deals accelerate its transformation into an integrated natural gas gathering, processing, and transmission partnership while building full value chain participation in gathering, treating, processing, fractionation, and Natural gas liquids (NGL) and gas marketing.
Southcross Energy's assets are in South Texas, Mississippi, and Alabama and include 3,100 miles (about 5,000 km) of pipeline. Its integrated South Texas system consists of 2,000 miles (about 3,200 km) and 500 million cubic feet (14 million cubic meters) a day of processing capacity from the Lone Star and Woodsboro cryogenic plants.
Southcross Holdings' indirectly owned assets, which are concentrated in South Texas, encompass a gas gathering system, an NGL system and the Robstown fractionator.
The South Texas facilities serve increasing regional demand for Eagle Ford production from new and expanding petrochemical complexes, LNG export projects, and exports to Mexico, as well as growing industrial demand along the U.S. Gulf Coast, American Midstream said.
Upon completion of the deals, American Midstream will strengthen its midstream infrastructure. The deals are expected to close in next year's second quarter.
American Midstream Partners LP is a limited partnership formed to provide midstream infrastructure that links producers of natural gas, crude oil, NGL, condensate and specialty chemicals to end-use markets. It owns the third largest cylinder exchange business and one of the largest regional retail propane providers.
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