NuDevco Midstream To Sell General Partner Interests In Marlin Midstream

(RTTNews) - NuDevco Midstream Development said it has agreed to sell 100 percent of its general partner interest in Marlin Midstream GP, LLC, the general partner of Marlin Midstream Partners, LP, (FISH) to Azure Midstream Energy, LLC for an undisclosed amount.

NuDevco Midstream will retain its current 10.7 million LP units, or 59.2 percent ownership stake, and 10 percent of the incentive distribution rights in Marlin Midstream Partners.

Post transaction, NuDevco Midstream will continue to develop assets throughout the crude oil value chain including transloaders, rail cars, trucks and storage tanks. The company has several projects currently underway and will continue to build value for the future.

Azure Midstream said in a separate statement that the transaction will result in Azure owning 100 percent of the general partner of Marlin and 90 percent ownership of the total outstanding incentive distribution rights in Marlin. In addition, Azure's Legacy gathering system will be contributed to Marlin for $162.5 million, called the dropdown acquisition.

Azure will retain the Center gathering system and the Holly gathering system at the general partner level for future potential dropdown acquisitions into the partnership over time.

The proposed transactions are expected to close during the first quarter of 2015. Upon closing of the proposed transactions, the combined partnership will have its corporate office headquartered in Dallas, Texas with a continuing commercial presence in Houston, Texas.

Upon closing, the combined partnership will have its corporate office headquartered in Dallas, Texas with a continuing commercial presence in Houston, Texas.

The combined partnership will be led by Azure's current executive management team, including Berthelot, currently CEO, and Azure's team of midstream veterans. The remaining partnership positions will be comprised of both Azure and Marlin personnel.