Cabot Oil & Gas Corp. has reached an agreement on Sept. 30 to sell its 20% ownership interest in Meade Pipeline Co. LLC to a subsidiary of NextEra Energy Partners LP for $256 million, or over 13 times expected 2019 EBITDAX (non-GAAP).
Meade owns approximately 39% of the Central Penn Line, the greenfield pipeline segment of the Atlantic Sunrise project. This transaction is expected to close during the fourth quarter of 2019, subject to customary closing conditions and adjustments.
Proceeds from this transaction, in addition to the company’s ongoing operating free cash flow, will allow Cabot to continue to enhance shareholder value by returning capital to shareholders through a combination of a growing dividend and an opportunistic share repurchase program.
BMO Capital Markets served as financial advisor to Cabot on this transaction.
Recommended Reading
Crescent Energy Closes $905MM Acquisition in Central Eagle Ford
2025-01-31 - Crescent Energy’s cash-and-stock acquisition of Carnelian Energy Capital Management-backed Ridgemar Energy includes potential contingency payments of up to $170 million through 2027.
Petro-Victory Buys Oil Fields in Brazil’s Potiguar Basin
2025-02-10 - Petro-Victory Energy is growing its footprint in Brazil’s onshore Potiguar Basin with 13 new blocks, the company said Feb. 10.
Apollo Funds Acquires NatGas Treatment Provider Bold Production Services
2025-02-12 - Funds managed by Apollo Global Management Inc. have acquired a majority interest in Bold Production Services LLC, a provider of natural gas treatment solutions.
Nabors Closes $370MM Parker Wellbore Acquisition
2025-03-12 - The acquisition of Parker Wellbore adds a large-scale, high performance tubular rental and repairs services operation in the Lower 48 and offshore U.S. to the Nabors portfolio.
VAALCO Acquires 70% Interest in Offshore Côte D’Ivoire Block
2025-03-03 - Vaalco Energy announced a farm-in of CI-705 Block offshore West Africa, which it will operate under the terms of an acquisition agreement.