EnLink Midstream To Buy Permian Basin Crude Oil Logistics Company

(RTTNews) - EnLink Midstream companies, EnLink Midstream Partners LP (ENLK) (the Partnership) and EnLink Midstream LLC (ENLC) (the General Partner) on Monday said that a subsidiary of the Partnership has agreed to buy LPC Crude Oil Marketing LLC ("LPC"), which has crude oil gathering, transportation and marketing operations in the Permian Basin, for about $100 million, subject to certain adjustments.

LPC currently purchases, transports and sells approximately 60,000 barrels per day of crude oil, serving as a critical link between Permian producers and end markets. The acquisition expands EnLink's service offerings in the Permian Basin, adding crude oil first purchasing and logistics capabilities to EnLink's existing natural gas gathering and processing services.

Barry Davis, EnLink Midstream Chief Executive Officer, said, "This acquisition enhances EnLink's ability to provide a complete midstream solution to customers in one of the most active producing basins in North America, and our plan is to make additional investments expanding LPC's business over time.

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 is expected to close in the first quarter of 2015.