QEP Midstream Partners LP (NYSE: QEPM) has acquired 40% of the outstanding membership interest in Green River Processing LLC, for $230 million in cash, from QEP Field Services Co., a wholly owned subsidiary of QEP Resources Inc. (NYSE: QEP).
The dropdown is the partnership's first acquisition since its IPO in August 2013. It is expected to be immediately accretive to distributable cash flow per unit. The partnership used cash on hand and proceeds from its $500 million credit facility to fund the acquisition.
Green River Processing owns the Blacks Fork natural gas processing complex and the Emigrant Trail natural gas processing plant located in southwest Wyoming. The assets consist of four natural gas processing plants with total processing capacity of 890 million cubic feet per day, and natural gas liquids fractionation capacity of 15,000 barrels per day with interconnects to six interstate natural gas pipelines and direct pipeline access to the Mt. Belvieu and Conway NGL markets.
In 2013, total natural gas inlet volumes for Green River Processing were about 201 million British thermal units, of which 65% were processed under fee-based processing agreements and 35% were processed under keep-whole processing agreements.
QEP Midstream Partners is an MLP formed by QEP Resources to own, operate, acquire and develop midstream assets.
Recommended Reading
Brett: Oil M&A Outlook is Strong, Even With Bifurcation in Valuations
2024-04-18 - Valuations across major basins are experiencing a very divergent bifurcation as value rushes back toward high-quality undeveloped properties.
Marketed: BKV Chelsea 214 Well Package in Marcellus Shale
2024-04-18 - BKV Chelsea has retained EnergyNet for the sale of a 214 non-operated well package in Bradford, Lycoming, Sullivan, Susquehanna, Tioga and Wyoming counties, Pennsylvania.
Defeating the ‘Four Horseman’ of Flow Assurance
2024-04-18 - Service companies combine processes and techniques to mitigate the impact of paraffin, asphaltenes, hydrates and scale on production — and keep the cash flowing.
Santos’ Pikka Phase 1 in Alaska to Deliver First Oil by 2026
2024-04-18 - Australia's Santos expects first oil to flow from the 80,000 bbl/d Pikka Phase 1 project in Alaska by 2026, diversifying Santos' portfolio and reducing geographic concentration risk.
Ozark Gas Transmission’s Pipeline Supply Access Project in Service
2024-04-18 - Black Bear Transmission’s subsidiary Ozark Gas Transmission placed its supply access project in service on April 8, providing increased gas supply reliability for Ozark shippers.