EnLink Midstream To Acquire Coronado Midstream For About $600 Mln

(RTTNews) - The EnLink Midstream companies, EnLink Midstream Partners, LP (ENLK) and EnLink Midstream, LLC (ENLC) announced that the Partnership signed a definitive agreement to acquire Coronado Midstream Holdings LLC for about $600 million, subject to certain adjustments.

The owners of Coronado will receive $240 million in cash, $180 million of Partnership common units and $180 million of a new class of Partnership common units, subject to certain adjustments. The Partnership will be able to pay distributions on the new class of Partnership common units in cash or in additional common units of such new class, at the Partnership's election, the company said.

The new class of Partnership common units will be entitled to receive distributions equal to those paid on the Partnership common units currently outstanding. After five quarters of distributions have been paid following the closing of the transaction, or earlier at the Partnership's election, the new class of common units will convert into the same class of common units that are currently outstanding.

EnLink said it expects the acquisition of Coronado to be neutral to distributable cash flow per unit at both the Partnership and the General Partner in the near-term given the current market environment and taking into consideration the producers' current drilling plans. Over the next few years, EnLink expects increased activity around Coronado's system will generate significant accretion in distributable cash flow per unit.

Coronado operates three cryogenic gas processing plants and a gas gathering system in the North Midland Basin including approximately 270 miles of gathering pipelines, 175 million cubic feet per day (MMcf/d) of processing capacity and 35,000 horsepower of compression.