Shell Midstream Partners LP (NYSE: SHLX) said May 10 it would buy parent Royal Dutch Shell Plc's (NYSE: RDS.A) stake in the Amberjack Pipeline Co. for $1.22 billion.
The acquisition is the Houston-based pipeline operator's largest purchase to date.
“This is a significant milestone for Shell Midstream Partners,” Kevin Nichols, CEO, said in a statement. “The Amberjack pipeline is strategically located to capture value in a prolific area in the Gulf of Mexico and represents another key corridor that is set to benefit from organic growth.”
The Amberjack pipeline, located in the Gulf of Mexico, transports roughly 300,000 barrels per day (bbl/d) of oil. The pipeline is forecasted to transport about 400,000 bbl/d by the end of 2019 from continued in-field development, as well as new projects expected to come online.
The acquisition is expected to close on or around May 11, subject to customary closing conditions.
The terms of the acquisition were approved by the conflicts committee of the board of directors of the general partner of Shell Midstream Partners, which is composed entirely of independent directors. The committee was advised by Tudor Pickering Holt & Co. Advisors LP as to financial matters and Akin Gump Strauss Hauer & Feld LLP as to legal matters.
Reuters contributed to this report.
Recommended Reading
Artificial Lift Firm Flowco’s Stock Surges 23% in First-Day Trading
2025-01-22 - Shares for artificial lift specialist Flowco Holdings spiked 23% in their first day of trading. Flowco CEO Joe Bob Edwards told Hart Energy that the durability of artificial lift and production optimization stands out in the OFS space.
Dividends Declared Week of Nov. 18
2024-11-22 - Here is a compilation of dividends declared in the week of Nov. 18 from select upstream and service and supply companies for fourth-quarter 2024.
Artificial Lift Firm Flowco Seeks ~$2B Valuation with IPO
2025-01-07 - U.S. artificial lift services provider Flowco Holdings is planning an IPO that could value the company at about $2 billion, according to regulatory filings.
Not Sweating DeepSeek: Exxon, Chevron Plow Ahead on Data Center Power
2025-02-02 - The launch of the energy-efficient DeepSeek chatbot roiled tech and power markets in late January. But supermajors Exxon Mobil and Chevron continue to field intense demand for data-center power supply, driven by AI technology customers.
Murphy Shares Drop on 4Q Miss, but ’25 Plans Show Promise
2025-02-02 - Murphy Oil’s fourth-quarter 2024 output missed analysts’ expectations, but analysts see upside with a robust Eagle Ford Shale drilling program and the international E&P’s discovery offshore Vietnam.