OKLAHOMA CITY–(BUSINESS WIRE)–Enable Midstream Partners, LP (NYSE: ENBL) today announced it has entered into a definitive agreement to acquire Align Midstream, LLC, which owns natural gas gathering and processing assets in the Cotton Valley and Haynesville plays of the Ark-La-Tex Basin, for approximately $300 million, subject to certain customary adjustments. This strategic acquisition extends Enable’s footprint in areas with increasing producer activity and is expected to be accretive to Enable’s 2018 distributable cash flow per unit.
Align operates approximately 190 miles of natural gas gathering pipelines across Rusk, Panola and Shelby counties in Texas and DeSoto Parish in Louisiana and a cryogenic natural gas processing plant in Panola, Texas, with a capacity of 100 million cubic feet per day. Align’s assets are underpinned with long-term, fee-based contracts, including approximately 100,000 gross acres of dedication from producer customers.
“This transaction complements Enable’s midstream platform in the Ark-La-Tex Basin, and we are well-positioned to integrate and optimize these assets,” said Enable Midstream President and CEO Rod Sailor. “We are excited about the outlook for the Cotton Valley and Haynesville, and this acquisition further builds out our footprint to capture opportunities in active areas of these plays.”
The acquisition is incremental to Enable’s 2017 expansion capital outlook, and Enable does not expect to access the capital markets in 2017 as a result of this transaction. The transaction is subject to customary regulatory approval and closing conditions and is expected to close as soon as practicable after such approvals and conditions have been satisfied.
ABOUT ENABLE MIDSTREAM PARTNERS
Enable owns, operates and develops strategically located natural gas and crude oil infrastructure assets. Enable’s assets include approximately 12,900 miles of gathering pipelines, 14 major processing plants with approximately 2.5 Bcf/d of processing capacity, approximately 7,800 miles of interstate pipelines (including Southeast Supply Header, LLC of which Enable owns 50 percent), approximately 2,200 miles of intrastate pipelines and eight storage facilities comprising 85.0 billion cubic feet of storage capacity. For more information, visit http://www.enablemidstream.com.