For about $925 million in a dropdown transaction, EnLink Midstream Partners LP (NYSE: ENLK) acquired a 25% equity interest in EnLink Midstream Holdings LP (EMH) from EnLink Midstream LLC (NYSE: ENLC), the company said Feb. 17.
ENLC is the general partner. About 31.6 million partnership units were issued to ENLC, and Dallas-based ENLK’s total equity interest is now 75%. ENLC owns the remaining 25% interest, the company said.
EMH owns the assets that Devon Energy Corp. (NYSE: DVN) contributed to ENLC 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 dropdown of the remaining 25% equity interest in EMH is expected to occur later in 2015.