OKLAHOMA CITY & DALLAS--(BUSINESS WIRE)--Mar. 7, 2014--
Devon Energy Corporation (NYSE: DVN) (“Devon”), EnLink Midstream, LLC
and EnLink Midstream Partners, LP today announced the completion of the
previously announced transaction to combine substantially all of Devon’s
U.S. midstream assets with the assets of the former Crosstex Energy,
Inc. and Crosstex Energy, L.P. (collectively, “Crosstex”). Crosstex
Energy, Inc. stockholders overwhelmingly voted in favor of the proposal
to adopt the previously announced merger agreement among Crosstex
Energy, Inc., Devon and certain of Devon’s subsidiaries. Following
closing, two publicly traded entities will exist: a general partner
entity and the master limited partnership, which will operate under the
legal names EnLink Midstream, LLC and EnLink Midstream Partners, LP,
respectively (collectively, “EnLink Midstream”). Both EnLink Midstream
securities will begin trading on March 10, 2014 on the New York Stock
Exchange under the symbols ENLC (the general partner) and ENLK (the
master limited partnership).
The combination of Devon’s and Crosstex’s extensive midstream systems
provides EnLink Midstream with diversification and scale, along with an
enhanced liquids-oriented growth profile. These assets are located in
many of North America’s premier oil and gas regions, including the
Barnett, Permian Basin, Cana and Arkoma Woodford, Eagle Ford,
Haynesville, Gulf Coast, Utica and Marcellus Shales. EnLink Midstream
has approximately 7,300 miles of gathering and transportation pipelines,
12 processing plants with 3.3 billion cubic feet per day of net
processing capacity, six fractionators with 180,000 barrels per day of
net fractionation capacity, as well as barge and rail terminals, product
storage facilities, brine disposal wells and an extensive crude oil
trucking fleet.
“We are excited to announce the completion of the transaction and the
new beginning for us as EnLink Midstream,” said
Barry E. Davis
,
President and Chief Executive Officer of EnLink Midstream. “Our vision
is to not only be one of the largest, but one the best midstream
providers in the industry. EnLink Midstream’s geographically diverse
asset base, strong financial foundation, and strategic upstream
sponsorship from Devon Energy position us for growth over the near and
long-term.”
Transaction Information
Consistent with the terms of the transaction, which was announced on
October 21, 2013, in exchange for a controlling interest in both the new
general partner entity and the master limited partnership, Devon has
contributed its equity interest in a newly formed Devon subsidiary
(“EnLink Midstream Holdings”) and $100 million in cash. EnLink Midstream
Holdings owns Devon’s former midstream assets in the Barnett Shale in
North Texas, the Cana and Arkoma Woodford Shales in Oklahoma and a
contractual right to the benefits and burdens of Devon’s interest in
Gulf Coast Fractionators in Mt. Belvieu, Texas. The master limited
partnership and the general partner each own 50% of EnLink Midstream
Holdings. Stockholders of Crosstex Energy, Inc. will receive one unit in
the general partner entity for each share of Crosstex Energy, Inc. they
owned, as well as a one-time cash payment of approximately $2.05 per
share.
About EnLink Midstream
EnLink Midstream is a leading midstream provider formed through the
combination of Crosstex Energy and substantially all of the U.S.
midstream assets of Devon Energy. EnLink Midstream will be publicly
traded through two entities: EnLink Midstream, LLC (ENLC), the publicly
traded general partner entity, and EnLink Midstream Partners, LP (ENLK),
the master limited partnership.
EnLink Midstream’s assets are located in many of North America’s premier
oil and gas regions, including the Barnett, Permian Basin, Cana and
Arkoma Woodford, Eagle Ford, Haynesville, Gulf Coast, Utica and
Marcellus Shales. Based in Dallas, Texas, EnLink Midstream has
approximately 7,300 miles of gathering and transportation pipelines, 12
processing plants with 3.3 billion cubic feet per day of net processing
capacity, six fractionators with 180,000 barrels per day of net
fractionation capacity, as well as barge and rail terminals, product
storage facilities, brine disposal wells and an extensive crude oil
trucking fleet.
More information about EnLink Midstream will be available on March 10,
2014 at www.enlink.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the federal securities laws. Although these statements
reflect the current views, assumptions and expectations of our
management, the matters addressed herein involve certain risks and
uncertainties that could cause actual activities, performance, outcomes
and results to differ materially than those indicated. Such
forward-looking statements include, but are not limited to, statements
about future financial and operating results, objectives, expectations
and intentions and other statements that are not historical facts.
Factors that could result in such differences or otherwise materially
affect our financial condition, results of operations and cash flows
include, without limitation, (a) the dependence on Devon for a
substantial portion of the natural gas that we gather, process and
transport, (b) the risk that our new company will not be integrated
successfully or that such integration will take longer than anticipated,
(c) the possibility that expected synergies will not be realized, or
will not be realized within the expected timeframe, (d) our lack of
asset diversification, (e) our vulnerability to having a significant
portion of our operations concentrated in the Barnett Shale, (f) the
amount of hydrocarbons transported in our gathering and transmission
lines and the level of our processing and fractionation operations, (g)
fluctuations in oil, natural gas and NGL prices, (h) construction risks
in our major development projects, (i) our ability to consummate future
acquisitions, successfully integrate any acquired businesses, realize
any cost savings and other synergies from any acquisition, (j) changes
in the availability and cost of capital, (k) competitive conditions in
our industry and their impact on our ability to connect hydrocarbon
supplies to our assets, (l) operating hazards, natural disasters,
weather-related delays, casualty losses and other matters beyond our
control, and (m) the effects of existing and future laws and
governmental regulations, including environmental and climate change
requirements and other uncertainties. These and other applicable
uncertainties, factors and risks are described more fully in EnLink
Midstream Partners, LP’s and EnLink Midstream, LLC’s filings with the
Securities and Exchange Commission, including EnLink Midstream Partners,
LP’s and EnLink Midstream, LLC’s Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K. Neither
EnLink Midstream Partners, LP nor EnLink Midstream, LLC assumes
any obligation to update these forward-looking statements.
Source: EnLink Midstream and Crosstex Energy and Devon Energy Corporation
EnLink Midstream
Jill McMillan, 214-721-9271
Director,
Public & Industry Affairs
Jill.McMillan@enlink.com