Still after shale play infrastructure, ArcLight revises buy-out

By Luke Geiver | January 07, 2019

ArcLight Energy Partners interest in fully acquiring American Midstream Partners and its assets across multiple shale plays hasn’t waned since the Boston-investment firm first announced plans to buyout the company. The price ArcLight is willing to pay since it first issues its buy-out plans near September last year, have however, decreased.

In September last year ArcLight offered a buyout plan for a common unit price of $6.10. The deal would have paid for the remaining shares in the midstream company that ArcLight doesn’t already own.

The newest, revised buyout plan, would give American Midstream $4.50 per common unit share.

ArcLight’s strategy is to invest in energy infrastructure assets with substantial growth potential, significant current income and meaningful downside protection.

American Midstream has 50 miles of liquid oil pipelines in the Bakken that are connected to the Dakota Access pipeline. In the Permian Basin, has gathering and processing pipelines, facilities and interests in a fractionation unit. Across the Eagle Ford, the company has more than 200-miles of gathering and transport pipelines.

In addition to the three shale play assets, the company also owns and operates assets in the Deepwater Gulf of Mexico and the Southeastern U.S.