Tailwater Capital-backed Align Midstream, LLC has entered into a definitive agreement to sell the company to Oklahoma City-based Enable Midstream Partners, LP (NYSE: ENBL) for approximately $300 million.

Dallas-based Align is focused on producers in East Texas and North Louisiana. Align operates a 100-million cubic feet per day cryogenic natural gas processing plant in Panola, Texas, and approximately 190 miles of natural gas gathering pipelines across Rusk, Panola and Shelby counties in Texas and DeSoto Parish in Louisiana. Align’s assets are underpinned by approximately 100,000 gross acres of dedication from producer customers.

Jason Downie, Managing Partner at Tailwater, said, “We are proud of the execution success demonstrated by Fritz Brinkman and his team at Align. Their ability to create a vertically integrated midstream asset and to achieve a strong return for our investors is second to none.”

Enable’s assets include approximately 12,900 miles of gathering pipelines, 14 major processing plants with approximately 2.5 Bcf/d of processing capacity, approximately 7,800 miles of interstate pipelines (including Southeast Supply Header, LLC of which Enable owns 50 percent), approximately 2,200 miles of intrastate pipelines and eight storage facilities comprising 85.0 billion cubic feet of storage capacity.

“We are excited about the outlook for the Cotton Valley and Haynesville, and this acquisition further builds out our footprint to capture opportunities in active areas of these plays,” said Enable President and CEO Rod Sailor. Enable said the acquisition is incremental to its 2017 expansion capital outlook, and Enable does not expect to access the capital markets in 2017 as a result of this transaction.

Simmons & Company International | Energy Specialists of Piper Jaffray acted as Align’s exclusive financial advisor in connection with the transaction. The Houston office of Locke Lord served as legal counsel to Align.


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