NextEra Energy To Acquire Meade Pipeline, Its Interests In Central Penn Line

(RTTNews) - NextEra Energy Partners, LP (NEP) has agreed to acquire Meade Pipeline Co LLC. The deal value is approximately $1.37 billion, which includes an initial consideration of $1.28 billion, plus future capital contributions of roughly $90 million. Cabot Oil & Gas Corp. (COG) has agreed to sell its 20 percent ownership interest in Meade Pipeline Co LLC to a subsidiary of NextEra Energy Partners for $256 million.

Meade Pipeline owns a 39.2% interest in the Central Penn Line, a 185-mile intrastate natural gas pipeline. The pipeline is backed by a minimum 14-year contract with an investment-grade-equivalent customer.

Jim Robo, CEO of NextEra Energy Partners, said: "Meade Pipeline is a very attractive acquisition for NextEra Energy Partners, and is expected to yield a double-digit return to NextEra Energy Partners' limited partner unitholders and generate a cash available for distribution yield of roughly 14%."

NextEra Energy Partners now projects Dec. 31, 2020, run-rate expectations for adjusted EBITDA and cash available for distribution to be consistent with year-end 2019 run-rate expectations. The company continues to project 12% to 15% per year growth in limited partner distributions as being a reasonable range of expectations through at least 2024.