NextEra Energy Partners L.P. announced to buy Meade Pipeline Co. LLC, co-owner of the Central Penn Line in Pennsylvania, in a deal valued at $1.37 billion.
Meade Pipeline owns a 39.2% interest in Central Penn Line and the majority is owned by Transcontinental Gas Pipe Line Company, which operates it as part of its Atlantic Sunrise project. The deal includes about $90 million in future capital contributions through 2022.
Central Penn Line is a 185-mile intrastate natural gas pipeline that provides the Marcellus natural gas producing region access to the mid-Atlantic and Southeastern regions of the U.S.
"Meade Pipeline is a very attractive acquisition for NextEra Energy Partners, and is expected to yield a double-digit return to NextEra Energy Partners' limited partner unitholders and generate a cash available for distribution yield of roughly 14%," said NextEra Chief Executive Officer Jim Robo.
He added that the deal will help expand NextEra’s investment in long-term contracted natural gas pipelines, “helping mitigate any potential resource volatility in the portfolio.”