Tristate Midstream Buys Gathering Lines

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
34MM
Description

Purchase of East Texas gathering assets.

Tristate Midstream II plans to buy natural gas gathering assets in East Texas to Forest Oil Corp (NYSE: FST) for $34 million.

Forest could collect an additional $9 million for the sale, depending on the performance of the assets in the future. In addition, Forest has signed a 10-year natural gas gathering agreement with Tristate under which it will commit its production from its existing and future operated wells located within the five miles of the current gathering system.

The sale is expected to close on Oct. 31. Forest intends to use the net proceeds from the sale to repay a portion of the outstanding borrowings under its bank credit facilities.

Tristate Midstream, funded by private equity firm Energy Spectrum Capital and based in Denton, TX, has midstream gathering and compression assets in Louisiana and Texas. Denver-based Forest is an upstream oil & gas company.