Shell Midstream Partners exercises buy-in option in Delaware Basin Nautilus Gas Gathering System

Shell Midstream Partners LP (NYSE: SHLX), a master limited partnership formed by Royal Dutch Shell plc, exercised its option to purchase a 50% equity interest in the Nautilus gas gathering system owned by Crestwood Permian Basin Holdings LLC (CPJV), a 50%/50% joint venture with First Reserve and operated by Crestwood Equity Partners LP (NYSE: CEQP), for $47 million.

The Nautilus system gathers the majority of Shell’s operated Delaware Basin gas under a 20-year tiered, fixed-fee contract.

The closing of the acquisition is subject to a due diligence period and customary closing conditions. Closing of the transaction is expected in the fourth quarter of 2017.

On August 3, Shell Midstream Partners reported net income attributable to the partnership of $65.5 million for the second quarter of 2017, which equated to $0.29 per common limited partner unit.  Shell Midstream Partners also generated adjusted earnings before interest, income taxes, depreciation and amortization attributable to the partnership of $82.7 million.

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