Enable Midstream Partners LP has agreed to acquire Align Midstream LLC from Tailwater Capital LLC for $300 million.
Align owns natural gas gathering and processing assets in the Cotton Valley and Haynesville plays of the Ark-La-Tex basin, including 190 miles of gas gathering pipelines across Rusk, Panola, and Shelby counties in Texas and DeSoto Parish in Louisiana and a 100-MMcfd cryogenic gas processing plant in Panola, Tex. The assets are underpinned by long-term, fee-based contracts, including 100,000 gross acres of dedication from producer customers.
“This transaction complements Enable’s midstream platform in the Ark-La-Tex basin, and we are well-positioned to integrate and optimize these assets,” said Rod Sailor, Enable Midstream president and chief executive officer.
The purchase is incremental to Enable’s 2017 expansion capital outlook, and Enable does not expect to access the capital markets in 2017 because of the deal.