DENVER–(BUSINESS WIRE)–American Midstream Partners, LP (NYSE: AMID) (the “Partnership”) today announced the acquisition of a 66.7 percent interest in the Okeanos pipeline, a 100-mile gas gathering system located in the Gulf of Mexico, from an affiliate of the Partnership’s general partner. Acquisition of the Okeanos pipeline complements the Partnership’s existing offshore infrastructure and further strengthens the Partnership’s position as a significant and integrated participant in offshore infrastructure, particularly in the deep-water.
The acquisition was fully funded under the $225 million financing announced on April 25, 2016 in conjunction with the acquisition of interests in Destin, Tri-States, and Wilprise, as well as crude, natural gas, and salt water onshore and offshore pipelines acquired from Chevron and the acquisition of an incremental interest in Delta House. The benefit of the acquisition of a majority interest in Okeanos was included in the updated 2016 forecast announced on April 25, 2016.
The Okeanos pipeline has total capacity of 1.0 billion cubic feet per day and connects two platforms and one lateral, terminating at the Destin Main Pass 260 platform in the Mississippi Canyon region of the Gulf of Mexico. The pipeline is designed to meet capacity requirements for platforms currently connected and has existing capacity to accommodate third-party volumes via subsea tie-backs or new export lines. Contracted volumes on Okeanos are based on life-of-field dedication. Enbridge, Inc. is the minority interest holder.
About American Midstream Partners, LP
Denver-based American Midstream Partners, LP is a growth-oriented limited partnership formed to own, operate, develop and acquire a diversified portfolio of midstream energy assets. The Partnership provides midstream services in Texas, North Dakota, and the Gulf Coast and Southeast regions of the United States. For more information about American Midstream Partners, LP, visit www.AmericanMidstream.com.
This press release includes forward-looking statements. These statements relate to, among other things, projections of operational volumetrics and improvements, growth projects, cash flows and capital expenditures. We have used the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “foreseeable,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” “potential,” “line-of-sight,” and similar terms and phrases to identify forward-looking statements in this press release. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. Our operations and future growth involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors which are described in greater detail in our filings with the SEC. Construction of growth projects are subject to risks beyond our control including cost overruns and delays resulting from numerous factors. In addition, we face risks associated with the integration of acquired businesses, decreased liquidity, increased interest and other expenses, assumption of potential liabilities, diversion of management’s attention, and other risks associated with growth and acquisitions, if consummated. Please see our Risk Factor disclosures included in our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 7, 2016. All future written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. The forward-looking statements herein speak as of the date of this press release. We undertake no obligation to update any information contained herein or to publicly release the results of any revisions to any forward-looking statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of this press release.