EnLink Midstream is buying LPC Crude Oil Marketing LLC, which has crude oil gathering, transport and marketing operations in the Permian Basin, for approximately US$100 million.
The purchase is being managed through a subsidiary of EnLink Midstream Partners, LP and EnLink Midstream, LLC.
LPC’s assets include 13 pipeline and refinery injection stations which are located in the most productive areas of the Permian Basin, a fleet of 43 tractor trailers, six crude oil gathering systems totalling 67 miles of pipeline, and an extensive crude oil first purchasing operation.
The transaction value represents a multiple of approximately eight times current run-rate adjusted EBITDA. EnLink expects the acquisition to generate follow-on investment opportunities that will lower the acquisition multiple over time. The acquisition, which is subject to customary closing conditions, including the receipt of regulatory approvals, is expected to close in the first quarter of 2015. Following this, LPC will operate as an indirect subsidiary of the partnership. The management team and employees of LPC will remain with EnLink.