QEP Midstream Partners LP (NYSE: QEPM) has acquired 40% of the outstanding membership interest in Green River Processing LLC for $230 million in cash from QEP Field Services Company, a wholly owned subsidiary of QEP Resources Inc. (NYSE: QEP).
The dropdown is the partnership's first acquisition since its initial public offering in August 2013. It is expected to be immediately accretive to distributable cash flow per unit. The partnership used cash on hand and proceeds from its $500 million credit facility to fund the acquisition.
Green River Processing owns the Blacks Fork natural gas processing complex and the Emigrant Trail natural gas processing plant located in southwest Wyoming. The assets consist of four natural gas processing plants with total processing capacity of 890 million cubic feet per day (MMcf/d), and natural gas liquids fractionation capacity of 15,000 barrels per day (bbl/d) with interconnects to six interstate natural gas pipelines and direct pipeline access to the Mt. Belvieu and Conway NGL markets.
In 2013, total natural gas inlet volumes for Green River Processing were approximately 201 million MMBtu, of which 65% were processed under fee-based processing agreements and 35% were processed under keep-whole processing agreements.
QEP Midstream Partners is a master limited partnership formed by QEP Resources to own, operate, acquire and develop midstream assets.
Recommended Reading
TotalEnergies Adds More Eagle Ford Shale Natgas to Support LNG
2024-09-27 - TotalEnergies said its second Eagle Ford deal this year with Lewis Energy Group strengthens the company’s upstream gas position and secures supply for its exports through Cameron LNG.
Glenfarne: Latest Customer Means Texas LNG is Ready for FID
2024-09-12 - Construction on Glenfarne’s Texas LNG is scheduled to begin this year, though the project is one of two LNG sites that had permits pulled after a court ruling in August.
SandRidge Closes $144MM Western Anadarko Basin Acquisition
2024-09-03 - SandRidge Energy’s deal, with an undisclosed party, adds net production of 6,000 boe/d (40% oil) in Ellis and Roger Mills counties, Oklahoma.
LandBridge Expands in Southern Delaware Basin with $245MM Acquisition
2024-11-19 - LandBridge is acquiring approximately 46,000 largely contiguous surface acres in the Wolf Bone Ranch from a subsidiary of Vitol-backed VTX Energy Partners.
ARC Resources Divests Non-core, Non-Montney Assets
2024-09-05 - ARC Resources did not provide additional information on the divested assets, which the company said had results in proceeds of $59.2 million.