Shell USA, Shell Midstream Partners reach merger agreement

July 25, 2022
Shell USA and Shell Midstream Partners executed a definitive agreement and plan of merger whereby Shell USA will acquire all the common units representing limited partner interests in SHLX held by the public in a cash deal.

Shell USA Inc. and Shell Midstream Partners LP (SHLX) executed a definitive agreement and plan of merger whereby Shell USA will acquire all the common units representing limited partner interests in SHLX held by the public in a cash deal valued at about $1.96 billion. A subsidiary of Shell USA currently owns 269,457,304 SHLX common units, or about 68.5%.

SHLX's assets include interests in entities that own crude oil and refined products pipelines and terminals that serve to transport onshore and offshore crude oil production to US gulf coast and Midwest refining markets and deliver refined products from those markets to major demand centers, as well as storage tanks and financing receivables that are secured by pipelines, storage tanks, docks, truck and rail racks and other infrastructure used to stage and transport intermediate and finished products.

Assets also include interests in entities that own natural gas and refinery gas pipelines that transport offshore natural gas to market hubs and deliver refinery gas from refineries and plants to chemical sites along the US Gulf Coast.

The deal is expected to close in this year’s fourth quarter, subject to customary closing conditions.