Acquisition of Additional 15.5% Interest in Delta House

Energy
Acquisition of Additional 15.5% Interest in Delta House

Summary

Baird served as financial advisor and provided a fairness opinion to the Conflicts Committee of the Board of Directors of the general partner of American Midstream Partners, LP

About

American Midstream Partners, LP (the “Partnership”) (NYSE: AMID) recently announced that the Partnership has acquired an additional 15.5% equity interest in Delta House, a fee-based, semi-submersible floating production and processing system (collectively, “Delta House”), from affiliates of ArcLight Capital Partners (“ArcLight”), which controls the general partner of the Partnership. ArcLight received $125.4 million of total consideration, partially funded with proceeds from the September sale of the Partnership’s propane marketing services business and borrowings under its senior secured revolving credit facility.

American Midstream Partners, LP is a growth-oriented limited partnership formed to provide critical midstream infrastructure that links producers of natural gas, crude oil, NGLs, condensate and specialty chemicals to end-use markets. The Partnership’s assets are strategically located in some of the most prolific onshore and offshore basins in the Permian, Eagle Ford, East Texas, Bakken and Gulf Coast. The Partnership is headquartered in Houston, Texas.

Delta House is operated by LLOG Exploration Offshore, L.L.C. and is located within the highly prolific, deep-water Mississippi Canyon region in the Gulf of Mexico and connects to the 1.2 Bcf/d Destin pipeline, in which the Partnership owns a 49.7% equity interest. Delta House has 100,000 barrels of crude oil and 240 million cubic feet of natural gas and liquids per day of processing capacity. Cash flows for Delta House are supported by long-term volumetric-tiered fee-based tariffs with ship-or-pay components and life-of-lease dedications with active deep-water Gulf of Mexico producers. Delta House commenced operations in April 2015 and currently has twelve wells online with production running near maximum capacity.

ArcLight is one of the leading private equity firms focused on North American energy infrastructure investments. Since its establishment in 2001, ArcLight has invested approximately $17 billion across multiple energy cycles in 99 transactions. ArcLight’s investment team brings extensive energy expertise, industry relationships, and specialized value creation capabilities to its portfolio. ArcLight is headquartered in Boston, Massachusetts.
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Energy
Acquisition of Additional 15.5% Interest in Delta House
Date
October 2017
Company
American Midstream Partners, LP
Transaction
M&A
Sectors
Energy
Target Location
North America
Acquiror Location
North America

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