EnLink Midstream Partners, LP today announced that it has acquired a 25 percent equity interest in EnLink Midstream Holdings, LP from EnLink Midstream, for approximately $925 million. The transaction consideration consists entirely of Partnership units, resulting in the issuance of approximately 31.6 million units to the General Partner. The Partnership’s total equity interest in EMH is now 75 percent, with the General Partner owning the remaining 25 percent interest. The acquisition will be immediately accretive to the Partnership, with the transaction value representing an approximate nine times multiple of estimated adjusted EBITDA of EMH for 2015.

EMH owns the assets that Devon Energy Corporation contributed to EnLink Midstream in March 2014, which include gathering and processing systems in North Texas and Oklahoma. The assets are supported by long-term, fixed-fee contracts with minimum volume commitments. The drop down of the remaining 25 percent equity interest in EMH is expected to occur later in 2015.

“The transfer of assets, or what is generally called a drop down transaction, is a key component of EnLink Midstream’s strategic growth plan,” said Barry E. Davis, EnLink Midstream President and Chief Executive Officer. “By transferring these assets, we are able to support growth in distributions, reduce the leverage of the Partnership and lower the long term tax outlook for ENLC. This transaction represents the second drop down from the General Partner to the Partnership, and we expect future transactions like this to play a significant role in EnLink Midstream’s growth strategy,” said Davis.

Joseph Barone
President
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