EnLink Midstream To Buy Victoria Express Pipeline From Devon

(RTTNews) - EnLink Midstream Partners LP (ENLK) on Monday said it has agreed to buy the Victoria Express Pipeline and related truck terminal and storage assets ("VEX") from Devon Energy Corp (DVN).

EnLink said the total consideration for the deal is about $210 million to $220 million, including about $171 million in cash, about 338,000 of the Partnership's common units and the assumption of up to about $40 million in certain construction costs.

The deal, which is expected to close on or about April 1, is expected to be immediately accretive to the Partnership.

The Partnership said the acquisition of pipeline, truck terminal, and storage assets will create strategic footprint in the Eagle Ford Shale.

"We continue to make significant progress executing on our growth plan," said Barry Davis, EnLink chief executive officer. "This transaction marks the first dropdown from Devon to EnLink, and we expect transactions like this to play a significant role in our future growth..."

The VEX assets include a 56-mile multi-grade crude oil pipeline, as well as the pipeline's destination facilities at the Port of Victoria, including an eight-bay truck unloading terminal, 200,000 barrels of above ground storage, of which 50,000 barrels are under construction, and rights to barge loading docks.

Also included in the deal are facilities near the origin of the pipeline that are currently under construction, including an eight-bay truck unloading terminal and 160,000 barrels of above-ground storage (the "Cuero Facilities"). The Cuero Facilities are expected to be operational in the second half of 2015.

The VEX pipeline, which became operational in the third quarter of 2014, currently transports condensate from DeWitt County to the Port of Victoria on the mid-coast of Texas.