American Midstream to Purchase JP Energy for $2 Billion

Denver-based American Midstream Partners is purchasing JP Energy Partners for $2 billion as part of its strategy to expand operations in North America.

The acquisition means American Midstream will own and operate assets from natural gas pipeline to storage capacity and will have a more diverse footprint in the North American basins. According to the company, it also allows for increased potential for third-party acquisitions.

The acquisition brings together over 3,100 miles of pipeline, according to a company statement.

“The merger elevates and reshapes our two businesses into a new platform that we expect will allow for higher growth, new business opportunities and a stronger financial position,” said the president of American Midstream, Lynn L. Bourdon, in a statement.

The transaction is expected to close either by the end of this year or early 2017.

Source:
Fuel Fix