American Midstream Partners & JP Energy Partners Announce Merger - Quick Facts

(RTTNews) - American Midstream Partners, LP (AMID) and JP Energy Partners LP (JPEP) announced execution of a merger agreement, under which American Midstream will acquire 100% of JP Energy in a unit-for-unit merger. The merger will create a diversified midstream business operating in leading North American basins, including the Permian, Gulf of Mexico, Eagle Ford and Bakken. The combined partnership will have an estimated enterprise value of $2 billion. Lynn Bourdon, III will serve as Chairman and CEO and Eric Kalamaras will serve as CFO of the combined Partnership.

American Midstream common units will be issued to JP Energy public unitholders at an exchange ratio of 0.5775:1 and to affiliates of ArcLight that hold common units and subordinated units at an exchange ratio of 0.5225:1, resulting in a blended average exchange ratio of 0.55:1. Consideration received by JP Energy public unitholders is structured as a unit-for-unit exchange valued at $8.63 per common unit.

The companies stated that the merger will provide leverage combined positions in the Permian; crude oil, liquids logistics, and terminals; in addition to approximately $10 million of run-rate synergies. The merger will also establish path to mid-single digit distribution growth over the long-term. Upon closing, the combined entity is expected to generate pro-forma Adjusted EBITDA of approximately $185 million, assuming 2016 mid-point guidance from each respective company.