American Midstream Partners has agreed to acquire certain assets from Southcross Holdings including pipelines and storage facilities.
Additionally, American Midstream has proposed to merge Southcross Energy Partners into a wholly owned subsidiary of American Midstream Partners. These agreements form two separate transactions totalling $815 million.
Once complete, American Midstream will own and operate integrated midstream infrastructure including:
– 8,000 miles of crude, natural gas and NGL pipelines
– Ten processing plants with more than 1.0 Bcf/d of capacity
– 6.7 million barrels of above-ground liquids storage capacity
Lynn L. Bourdon III, chairman, president, CEO of American Midstream, says: ‘This transaction accelerates our transformation into a fully integrated gathering, processing and transmission company focused in select core areas.
‘The addition of the Southcross assets allows us to capture the full midstream value chain in the very prolific Eagle Ford basin. The transaction represents a unique opportunity to expand our onshore gathering, processing and transmission services, linking supplies from the economically attractive Eagle Ford shale to high demand growth markets along the Gulf Coast.’