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
E&P Highlights: July 1, 2024
2024-07-01 - Here’s a roundup of the latest E&P headlines, including the Israeli government approving increased gas export at the Leviathan Field and Equinor winning a FEED contract for the all-electric Fram Sør Field.
SLB, OneSubsea, Subsea 7 Sign Collaboration Deal with Equinor
2024-05-02 - Work is expected to begin immediately on Equinor’s Wisting and Bay Du Nord projects.
Equinor Says EQT Asset Swap Upgrades International Portfolio
2024-04-30 - Equinor CFO Torgrim Reitan says the company’s recent U.S. asset swap with EQT Corp. was an example of the European company “high-grading” its international E&P portfolio.
E&P Highlights: May 20, 2024
2024-05-20 - Here’s a roundup of the latest E&P headlines, including development of the Belinda Field in the North Sea to new contract awards and service company acquisitions.
E&P Highlights: July 15, 2024
2024-07-15 - Here’s a roundup of the latest E&P headlines, including Freeport LNG’s restart after Hurricane Beryl and ADNOC’s deployment of AI-powered tech at its offshore fields.