EnLink Midstream Emerges from Devon, Crosstex Deal
Devon Energy Corp. and Crosstex Energy LP and Crosstex Energy Inc. have selected EnLink Midstream Partners LP and EnLink Midstream LLC as the names of a new combined midstream business following an October 2013 agreement for the companies to combine midatream.
Devon and Crosstex signed a definitive agreement on Oct. 21, 2013, to combine substantially all of Devon’s U.S. midstream assets with Crosstex’s assets to form the new midstream business. The new business will consist of two publicly traded entities: the master limited partnership, whose name will change upon closing from Crosstex Energy LP to EnLink Midstream Partners LP, and a publicly traded general partner entity, which will be called EnLink Midstream LLC. Applications will be filed to list the common units of both companies on the New York Stock Exchange upon the closing under the symbols “ENLK” and “ENLC”, respectively. The new website for EnLink Midstream can be found at www.enlink.com.
“We are proud to introduce EnLink Midstream, which will be a leading, integrated midstream company with a diverse geographic footprint and a strong financial foundation,” said Barry E. Davis, CEO of Crosstex and incoming CEO of EnLink Midstream. “This strategic combination is expected to generate immediate and future value for our equity holders and to provide greater capacity to pay distributions. Our enhanced financial position will support both existing and new growth projects and our employees will benefit from working for a larger, stronger company.”
The transaction is expected to close in the first quarter of 2014, pending stockholder approval.
UPDATED March 17
Devon Energy, EnLink Midstream and EnLink Midstream Partners announced March 7 the completion of the transaction to combine substantially all of Devon’s U.S. midstream assets with the assets of the former Crosstex Energy Inc. and Crosstex Energy LP. Crosstex stockholders overwhelmingly voted in favor of the proposal to adopt the merger agreement.