Dallas, TX-based Align Midstream Partners, a portfolio company of Tailwater Capital, has entered into a definitive agreement to sell the company to Enable Midstream Partners LP (NYSE: ENBL) for approximately $300 million, subject to certain customary adjustments.
Read OGFJ's interview with Tailwater Capital's founders from our May 2016 issue here.
Align is focused on servicing producers’ needs in East Texas and North Louisiana. Align operates a 100-million cubic foot per day cryogenic natural gas processing plant in Panola, Texas, and approximately 190 miles of natural gas gathering pipelines across Rusk, Panola, and Shelby counties in Texas and DeSoto Parish in Louisiana. Align’s assets are underpinned with long-term, fee-based contracts, including approximately 100,000 gross acres of dedication from producer customers.
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%), approximately 2,200 miles of intrastate pipelines and eight storage facilities comprising 85.0 billion cubic feet of storage capacity.
Simmons & Company International | Energy Specialists of Piper Jaffray acted as Align’s exclusive financial advisor. Locke Lord served as legal counsel to Align.
The transaction is subject to regulatory approval and closing conditions and is expected to close as soon as practicable after such regulatory approvals and closing conditions have been satisfied.