EnLink Midstream LLC (NYSE: ENLC) said Oct. 29 it has purchased additional interest in its MLP.
The Dallas company's subsidiary has purchased about 2.8 million common units of EnLink Midstream Partners LP (NYSE: ENLK) for $50 million. Proceeds will be used to fund the MLP's growth.
EnLink Midstream LLC is the general partner of the MLP. Following the purchase, the general partner's ownership interest in the MLP will increase to about 26.7%.
“We believe the purchase of ENLK’s common units is an attractive investment opportunity given the partnership’s significant growth opportunities and key strategic advantages," said Barry E. Davis, EnLink president and CEO, in a statement.
The MLP has strong fee-based contracts, strong sponsorship from Devon Energy Corp. (NYSE: DVN), an attractive asset platform, and an investment-grade balance sheet, Davis added.
EnLink’s assets are located in many U.S. shale plays including the Barnett, Permian Basin, Cana-Woodford, Arkoma-Woodford, Eagle Ford, Haynesville, Gulf Coast region, Utica and Marcellus. Its assets include more than 9,200 miles of gathering and transportation pipelines, 17 processing plants and seven fractionators.
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