American Midstream Partners LP (NYSE: AMID) said April 25 it acquired interests in "strategic" midstream infrastructure in the Gulf of Mexico (GoM) for about $225 million.
The Denver-based company's acquisitions consisted of incremental ownership in Delta House, which is a semisubmersible Floating Production System in the GoM. Delta House is operated by LLOG Exploration Co. LLC.
Other acquisitions included:
- Interests in the Destin natural gas pipeline and the Tri-States and Wilprise NGL pipelines, all of which are FERC-regulated pipelines that collectively serve as a primary transport system for rich-gas production from the Eastern GoM. The Destin pipeline is supplied by Delta House and various other large Eastern GoM producing fields. The pipeline interests were acquired from an affiliate of the general partner of the partnership; and
- Majority interest in crude, natural gas, and saltwater onshore and offshore pipelines located in the GoM, including the Henry Gas Gathering System, from Chevron Corp. (NYSE: CVX).
The acquisitions were funded with preferred equity issued to an affiliate of ArcLight Capital Partners LLC and borrowings on the revolving credit facility. ArcLigh controls the general partner of American Midstream Partners.
American Midstream Partners intends to acquire an interest in another offshore natural gas pipeline from an affiliate of its general partner during the second quarter of 2016. This potential acquisition is fully funded under the current financing, the release said.
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