The EnLink Midstream companies, EnLink Midstream Partners, LP
(NYSE:ENLK) (the “Partnership”) and EnLink Midstream, LLC (NYSE:ENLC)
(the “General Partner”) (together “EnLink”), today announced that a
subsidiary of the Partnership and the General Partner completed its
previously announced acquisition of certain subsidiaries of Tall
Oak Midstream, LLC for $1.55 billion, subject to certain adjustments.
“The acquisition of Tall Oak is consistent with our growth strategy and
will provide additional expansion opportunities in one of the best plays
in the nation, the liquids-rich STACK play,” said Barry E. Davis, EnLink
Midstream President and Chief Executive Officer. “This region offers
some of the best drilling economics in North America with low breakeven
prices and active producer customers who are committed to growing in the
area.
“Additionally, the Tall Oak assets are anchored by long-term, fee-based
contracts, with Devon being the largest customer on the system due to
its acquired Felix acreage. We remain committed to maintaining our
strong balance sheet and investment-grade credit profile while also
providing long-term value to our unitholders by growing our business
prudently and profitably.”
Tall Oak’s gathering, processing and compression assets are located in
the core of the STACK and Central Northern Oklahoma Woodford (“CNOW”)
plays, and serve as an excellent complement to EnLink’s existing
position in the Cana-Woodford. Tall Oak’s key contracts are primarily
fee-based with substantial acreage dedications and have a remaining
weighted-average term of approximately 15 years. Additionally Devon will
provide EnLink with five-year minimum volume commitments for gathering
and processing on the dedicated Felix acreage.
About the EnLink Midstream Companies
EnLink Midstream is a leading, integrated midstream company with a
diverse geographic footprint and a strong financial foundation,
delivering tailored customer solutions for sustainable growth. EnLink
Midstream is publicly traded through two entities: EnLink Midstream, LLC
(NYSE: ENLC), the publicly traded general partner entity, and EnLink
Midstream Partners, LP (NYSE: ENLK), the master limited partnership.
EnLink Midstream’s assets are located in many of North America’s premier
oil and gas regions, including the Barnett Shale, Permian Basin,
Cana-Woodford Shale, Arkoma-Woodford Shale, Eagle Ford Shale,
Haynesville Shale, Gulf Coast region, Utica Shale and Marcellus Shale.
Based in Dallas, Texas, EnLink Midstream’s assets include over 9,700
miles of gathering and transportation pipelines, 19 processing plants
with 3.8 billion cubic feet per day of processing capacity, seven
fractionators with 280,000 barrels per day of fractionation capacity, as
well as barge and rail terminals, product storage facilities, purchase
and marketing capabilities, brine disposal wells, an extensive crude oil
trucking fleet and equity investments in certain private midstream
companies. Additional information about the EnLink Midstream companies
can be found at www.EnLink.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the federal securities laws. These statements are based on
certain assumptions made by the Partnership and the General Partner
based upon management's experience and perception of historical trends,
current conditions, expected future developments and other factors the
Partnership and the General Partner believe are appropriate in the
circumstances. These statements include, but are not limited to,
statements about future financial and operating results, objectives,
expectations and intentions that are not historical facts. Such
statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the Partnership
and the General Partner, which may cause the Partnership's and the
General Partner’s actual results to differ materially from those implied
or expressed by the forward-looking statements. These risks include, but
are not limited to, the risk that the entities and assets to be acquired
will not be successfully integrated or that such integration will take
longer than expected, the risk that the entities and assets to be
acquired will not perform as expected, the risk that the assets to be
acquired fail to generate follow-on investment opportunities, the risk
that the transaction does not result in expected synergies, the risk
that the Partnership fails to maintain its investment grade credit
rating, the risk that the contemplated construction projects are not
completed on time or at all, regulatory, economic and market conditions
and other risks discussed in the Partnership's and the General Partner’s
filings with the Securities and Exchange Commission. The Partnership and
the General Partner have no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
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