EnLink Midstream companies, EnLink Midstream Partners LP and EnLink Midstream LLC, announced Jan. 7, that a subsidiary completed its previously announced acquisition of certain subsidiaries of Tall Oak Midstream LLC for $1.55 billion, subject to certain adjustments.
“The acquisition of Tall Oak is consistent with our growth strategy and will provide additional expansion opportunities in one of the best plays in the nation, the liquids-rich STACK play,” said Barry E. Davis, EnLink Midstream president and CEO. “This region offers some of the best drilling economics in North America with low breakeven prices and active producer customers who are committed to growing in the area.
“Additionally, the Tall Oak assets are anchored by long-term, fee-based contracts, with Devon being the largest customer on the system due to its acquired Felix acreage. We remain committed to maintaining our strong balance sheet and investment-grade credit profile while also providing long-term value to our unitholders by growing our business prudently and profitably.”
Tall Oak’s gathering, processing and compression assets are located in the core of the STACK and Central Northern Oklahoma Woodford plays, and serve as an excellent complement to EnLink’s existing position in the Cana-Woodford. Tall Oak’s key contracts are primarily fee-based with substantial acreage dedications and have a remaining weighted-average term of approximately 15 years. Additionally Devon will provide EnLink with five-year minimum volume commitments for gathering and processing on the dedicated Felix acreage.Tags: EnLink Midstream, EnLink Midstream LLC, EnLink Midstream Partners, Tall Oak Midstream