The partnership paid $145 million, subject to certain customary post-closing purchase price adjustments, and may pay up to an additional $15 million to the sellers depending on the earnings of the assets after a three-year period. The partnership funded the acquisition with debt under its existing credit facility.
The partnership purchased Michigan Pipeline & Processing (MPP) which owns interests in certain gathering and treatment assets in the Antrim Shale, as well as interests in three intrastate gas transportation lines in Michigan.
Mark Borer, president and CEO of the partnership, said: We are pleased to add these 100% fee-based assets to our portfolio in an acquisition that is accretive for our unitholders. The Antrim Shale has sustained steady drilling activity for over a decade. With its shallow, low cost, low risk wells and long lived reserves, the volume profile supports stable cash flows for the partnership.
