Azure Midstream Partners LP (OTCQB: AZUR) has sold the 100MMcf/d Panola I processing plant and Murvaul pipeline to Dallas, TX-based Align Midstream Partners for $44.9 million in cash proceeds.
In a statement, Azure’s CEO, I.J. "Chip" Berthelot, II, said the transaction allows the company to reduce debt by $41 million and increase annual EBITDA run rate by about $1.5 million through the elimination of fixed costs associated with the assets sold. The partnership continues to own and operate 210 MMcf/d of natural gas processing capacity in East Texas and has over 950 miles of gathering pipeline in East Texas and North Louisiana.
Align Midstream Partners is backed by Tailwater Capital, a Dallas-based private equity firm.
Wells Fargo Securities LLC and Evercore served as financial advisor to Azure.