American Energy Midstream Changes Name to Traverse Midstream Partners
American Energy – Midstream is changing its name to Traverse Midstream Partners as it transitions to a standalone company, fully independent of American Energy Partners LP.
“We are very proud to announce our move to a standalone company and our name change to Traverse Midstream Partners,” said Dave Shiels, Traverse Midstream CEO. “We currently have investments in two of the most important natural gas pipeline projects for the Utica and Marcellus regions, both of which will be operated by one of the premiere pipeline operators in the industry, Energy Transfer Partners. We are excited to be part of these efforts and look forward to delivering our contribution to their success and to other projects in the future as a standalone company.”
The transition and name change has been contemplated since the company’s founding in June 2014 and will be effective on July 1. Traverse Midstream has been capitalized by a $500 million equity commitment provided by The Energy & Minerals Group, and additional equity provided by Aubrey. K. McClendon and other members of American Energy Partners management and affiliated parties of Mr. McClendon.
Traverse Midstream has two significant investments in critical midstream infrastructure designed to serve the Appalachian shale basins. Traverse Midstream has a 35 percent non-operating equity interest in Rover Pipeline LLC, a 710-mile interstate natural gas pipeline company majority owned and operated by Energy Transfer Partners, L.P. (ETP). The Rover Pipeline project will allow for seamless natural gas pipeline service to its shippers from the Marcellus and Utica production areas to markets in the Midwest, Great Lakes and Gulf Coast regions of the U.S., and to the Union Gas Dawn Hub in Ontario, Canada, through its connection to Vector Pipeline.
The Rover Pipeline is supported by 15 and 20 year fee-based contracts to transport over 3.0 billion cubic feet per day (Bcf/d) of natural gas. Transportation from the supply regions to the Midwest Hub near Defiance, Ohio is expected to begin by the end of 2016 to serve the Gulf Coast and Midwest markets. The remaining service to other markets including Michigan and the Union Gas Dawn Hub will be in service by mid-2017.
Traverse Midstream also has a 25 percent non-operating equity interest in the Ohio River System, which includes construction of a 52-mile, 36-in. gas gathering trunkline that will be capable of delivering up to 2.1 Bcf/d to Rockies Express Pipeline and Texas Eastern Transmission on the southern end of the line and an additional 1.4 Bcf/d through a 12-mile, 30-in. lateral to the interstate grid on the northern end of the line which will bring overall system deliverability to 3.5 Bcf/d. The Ohio River System will access Monroe, Belmont, Jefferson and Harrison counties in eastern Ohio with an expected service date of Q3 2015. This project is also majority owned and operated by ETP.
“I am very pleased today to see our second platform company announce its transition to becoming a fully independent standalone company. Along with Ascent Resources Corporation’s announced separation two weeks ago, today’s Traverse Midstream announcement serves as a reminder of the successful collaboration between EMG and American Energy Partners in starting, funding and developing first-class companies dedicated to a particular play, basin or strategy,” said Aubrey K. McClendon, chairman and CEO of American Energy Partners and chairman of Traverse Midstream. “I’ve worked with Dave Shiels over the last five years and have 100 percent confidence in his executive abilities and I look forward to his leadership making Traverse Midstream one of the industry’s most successful midstream companies.”
