Midstream energy player EnLink Midstream Partners LP ENLK declared the acquisition of the remaining 25% interest in EnLink Midstream Holdings LP (EMH) from EnLink Midstream, LLC ENLC.
As a result, the partnership holds 100% interest in EMH. For the purchase, EnLink Midstream Partners has paid $900 million worth common units – that are newly issued.
With the acquisition, the partnership gets the ownership of EMH’s asset base which includes North Texas and Oklahoma-based gathering and processing facilities along with Mont Belvieu, Texas-located fractionators. It is to be noted that the gathering and processing properties are backed by long-term contracts having fixed-fee. Those assets are also supported by minimum volume commitments.
EnLink Midstream Partners added that the acquisition will get reflected immediately in the increased distributable cash flows.
On May 6, 2015, the partnership reported first-quarter net income per limited partner common unit of 3 cents, failing to meet the Zacks Consensus Estimate of 11 cents.
Dallas, TX-based EnLink Midstream Partners primarily engages in the gathering, transporting, processing, fractionation and marketing services to the upstream energy players involved in exploration and production of natural gas and crude oil. The partnership connects its gathering systems to the producer’s natural gas wells.
Currently, EnLink Midstream Partners carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, a couple of better-ranked players are LRR Energy LP LRE and Pembina Pipeline Corporation PBA. Both these stocks sport a Zacks Rank #1 (Strong Buy).
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