Current AMID Stock Info

In a $170 million cash transaction, American Midstream Partners (ticker: AMID)—which provides natural gas and oil gathering, processing, and transmission—has agreed to sell its propane business to SHV Energy. The sale includes American Midstream’s service locations, cylinder exchange program, and Alliant Gas utility system.

Re-deploying capital

American Midstream is undertaking the transaction with the intent of simplifying its business and allocating capital from its non-core to its core assets. In keeping with this goal, the company acquired the Viosca Knoll system—a gathering system serving fields producing from Main Pass, Mississippi Canyon, and Viosca Knoll in the Gulf of Mexico—from Genesis Energy for $32 million.

American Midstream has midstream infrastructure in multiple onshore and offshore basins—namely the Permian, Eagle Ford, East Texas, Bakken and Gulf of Mexico. Between these fields, the company holds interest in 4,000 miles of pipelines as well as interest in gas processing plants, fractionation facilities, and a semisubmersible floating production system. The company also has an interest in terminal sites with approximately 6.7 MMBO of storage capacity.

Netherlands based SHV Energy was founded in 1896 and is engaged in distribution of energy sources throughout Europe. “LPG is recognised as the cleanest available conventional fuel for consumers situated beyond the natural gas grid,” the company said. SHV Energy has LPG companies in South America, Asia and Europe.

U.S. propane industry growing despite oil downturn

According to the EIA’s information on regional propane stocks, the East Coast, Midwest, and Gulf Coast regions of the U.S. have all been trending upward in the total regional supply of propane since the supply troughed in April, 2017. Due to seasonal heating demand, current demand for propane fluctuates around one million barrels per day during this time of year.

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