American Midstream Close $60 Million Acquisition Of Blackwater

Acquired Blackwater Midstream Holdings LLC, with 1.3 MM bbls of storage capacity.

American Midstream Partners LP (NYSE: AMID) announced Dec. 18 that it completed the acquisition of Blackwater Midstream Holdings LLC, a developer and operator of terminal storage facilities, from an affiliate of ArcLight Capital Partners LLC for $60 million.

The acquisition was announced on Dec. 10 and includes Blackwater’s three operating terminal sites located in Westwego, La., Brunswick, Ga., and Salisbury, M.D. along with a brownfield development opportunity in Harvey, La., located near Blackwater’s Westwego terminal.

The three operating terminals have a total of 1.3 million barrels of storage capacity and store a variety of products including chemical, agricultural, and petroleum liquid products. Both the Westwego and Brunswick sites are operating at capacity and have the potential for additional expansions. The Harvey development site is expected to commence operations in 2014, with the potential for up to two million barrels of capacity when fully developed, which would increase Blackwater’s total barrels of storage by more than 100%.

The acquisition is expected to be immediately accretive to the Denver-based American Midstream’s current distribution and creates a strong and competitive position in a segment of the midstream industry that is characterized by fee-based contracts that are not directly subject to commodity price volatility.