American Midstream Partners, LP acquired and closed additional minority interests in the Delta House semisubmersible floating production system (FPS) and associated Gulf Coast oil and gas pipelines.

The additional interests were acquired from Red Willow Offshore LLC, LLOG Bluewater Holdings LLC, and Ridgewood Energy Corp. for about $49 million total consideration.

American Midstream’s total equity interest is now 20.14%.

Delta House is directly connected into the Destin and Okeanos pipelines, which American Midstream Partners will operate during this quarter. The integration of the combined assets offers increased service to the partnership’s customers. Unitholders will also receive additional value by transporting natural gas and liquids from the wellhead through takeaway pipelines.

Delta House is operated by LLOG Exploration Offshore LLC. Located in the Mississippi Canyon region of the deepwater U.S. Gulf of Mexico, it has peak processing capacity of 100,000 barrels of crude oil per day and 240 million cubic feet of natural gas and liquids per day.

The FPS began operations in April 2015 and currently has 11 wells online.

The acquisition was immediately accretive to American Midstream’s adjusted EBITDA, and is part of its strategy to build a portfolio of complementary assets across multiple strategic basins.

The acquisition was funded with the issuance of 2.33 million Series D convertible preferred units issued to ArcLight Capital LP affiliates. This totaled about $35 million. Also, roughly $14 million in borrowings under American Midstream’s revolving credit facility funded the acquisition.

American Midstream said it expects to be at the higher end of previously announced 2016 adjusted EBITDA guidance.

American Midstream Partners LP is based in Houston.

Offshore