Enable Midstream Partners LP (NYSE: ENBL) is expanding its footprint in the Cotton Valley and Haynesville shale plays with the $300 million acquisition of Dallas-based Align Midstream LLC, the company said Sept. 12.
Enable, based in Oklahoma City, said it entered an agreement to acquire Align, which owns natural gas gathering and processing assets in the Cotton Valley and Haynesville plays of the Ark-La-Tex Basin.
Align operates about 190 miles of natural gas gathering pipelines across Rusk, Panola and Shelby counties in Texas and DeSoto Parish in Louisiana and a cryogenic natural gas processing plant in Panola, Texas, with a capacity of 100 million cubic feet per day. The company’s assets are underpinned with long-term, fee-based contracts, including roughly 100,000 gross acres of dedication from producer customers, according to Enable's release.
Enable said the acquisition extends the company's footprint in areas with increasing producer activity and is expected to be accretive to its 2018 distributable cash flow per unit.
“This transaction complements Enable’s midstream platform in the Ark-La-Tex Basin, and we are well-positioned to integrate and optimize these assets,” Rod Sailor, Enable’s president and CEO, said in a statement. “We are excited about the outlook for the Cotton Valley and Haynesville, and this acquisition further builds out our footprint to capture opportunities in active areas of these plays.”
The acquisition is incremental to Enable’s 2017 expansion capital outlook, and the company does not expect to access the capital markets in 2017 as a result of this transaction. The transaction is subject to customary regulatory approval and closing conditions and is expected to close as soon as practicable after such approvals and conditions have been satisfied, the release said.
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