Acquisition of Equity Interests from BP p.l.c.

Energy
Acquisition of Equity Interests from BP p.l.c.

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 BP Midstream Partners LP

About

BP Midstream Partners LP (the “Partnership”) (NYSE: BPMP) recently announced that the Partnership has acquired equity interests in Mardi Gras Transportation System Company LLC (“Mardi Gras”), URSA Oil Pipeline Company LLC (“Ursa”) and KM-Phoenix Holdings LLC (“KM-Phoenix”) from indirect wholly-owned subsidiaries of BP p.l.c. (NYSE: BP; LSE: BP) for $468 million in cash. The acquisition will increase the Partnership’s interest in Mardi Gras from 20% to 65%. In addition, the Partnership will acquire BP p.l.c.'s 22.6916% interest in Ursa and its 25% in KM-Phoenix.

BP Midstream Partners LP is a fee-based, growth-oriented master limited partnership formed by BP p.l.c. to own, operate, develop and acquire pipelines and other midstream assets. The Partnership’s assets consist of interests in entities that own crude oil, natural gas, refined products and diluent pipelines serving as key infrastructure for BP p.l.c. and its affiliates and other customers to transport onshore and offshore production to key refining markets and trading and distribution hubs. The Partnership is headquartered in Houston, Texas.

Mardi Gras holds four joint venture interests in the Caesar, Cleopatra, Proteus and Endymion pipelines, all of which are operated by an affiliate of Royal Dutch Shell plc (“Shell”) and serve large offshore upstream developments in the prolific Green Canyon and Mississippi Canyon regions of the Gulf of Mexico. Ursa is a crude oil pipeline operated by Shell and transports crude oil production from a platform located in the Mississippi Canyon area to a connection with the Mars Pipeline in the Gulf of Mexico. KM-Phoenix’s assets include 13 refined product terminals linking BP p.l.c.'s three United States refineries that collectively account for 746,000 barrels per day of refining throughput, with key marketing areas.
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Energy
Acquisition of Equity Interests from BP p.l.c.
Date
October 2018
Company
BP Midstream Partners LP
Transaction
M&A
Sectors
Energy
Target Location
North America
Acquiror Location
North America

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