Devon Energy Corp. (NYSE: DVN), Crosstex Energy Inc. (Nasdaq: XTXI) and Crosstex Energy LP (Nasdaq: XTEX) announced March 7 it completed its merger agreement to form a new midstream business operating as EnLink Midstream LLC and EnLink Midstream Partners LP.
Crosstex Energy Inc. stockholders overwhelmingly voted in favor of the transaction to combine substantially all of Devon’s U.S. midstream assets with the assets of the former Dallas-based Crosstex Energy Inc. and Crosstex Energy LP, the companies said in a press release.
EnLink Midstream, based in Dallas, will control assets located in many oil and gas regions in North America, including the Barnett, Permian Basin, Cana and Arkoma Woodford, Eagle Ford, Haynesville, Gulf Coast, Utica and Marcellus shales. EnLink Midstream has an estimated 7,300 miles of gathering and transportation pipelines, 12 processing plants with 3.3 billion cubic feet per day (Bcf/d) of net processing capacity, six fractionators with 180,000 barrels per day of net fractionation capacity, as well as barge and rail terminals, product storage facilities, brine disposal wells and an extensive crude oil trucking fleet.
The combination of Devon’s and Crosstex’s extensive midstream systems provides EnLink Midstream with diversification and scale, along with an enhanced liquids-oriented growth profile.
Devon, based in Houston, contributed its equity interest in its newly formed subsidiary EnLink Midstream Holdings and $100 million in cash. EnLink Midstream Holdings owns Devon's former midstream assets in the Barnett shale in North Texas, the Cana and Arkoma Woodford shales in Oklahoma and a contractual right to the benefits and burdens of Devon's interest in Gulf Coast Fractionators in Mt. Belvieu, Texas.
EnLink Midstream LLC, the general partner, and Enlink Midstream Partners LP each own 50% of EnLink Midstream Holdings. Stockholders of Crosstex Energy Inc. will receive one unit in the general partner entity for each share of Crosstex Energy Inc. they owned and a one-time cash payment of $2.05 per share.
Both EnLink Midstream LLC and EnLink Midstream Partners LP will begin trading on March 10 on the New York Stock Exchange under the symbols "ENLC" and "ENLK."
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