Comprehensive M&A data with integrated detailed company information

BP Energy mulls sale of its portfolio company: Reuters
Posted on Friday, 16 June 2017 13:06
US private equity firm BP Energy Partners is looking to offload Houston-based Pinnacle Midstream, four people familiar with the matter told Reuters.

According to one source, the portfolio company could be sold for at least USD 300.00 million.

Pinnacle provides gas gathering and processing, crude gathering and transloading services, as well as partnering with oil and gas producers to install and operate midstream assets.

The group, which has a presence in Mississippi, Texas, Louisiana, New Mexico and Oklahoma, has recently begun engineering and construction on the Sierra Grande Gas Processing Plant, a cryogenic gas plant located around nine miles west of Orla, Texas.

Reuters’ sources noted that potential acquirors may see value in the transaction due to longer-term contracts supporting the target’s operations.

Texas-headquartered BP Energy is backed by investment trust T Boone Pickens and manages funds that invest across the North American natural gas value chain.

Chief executive of Pinnacle, Greg Sargent, and a spokesman for BP Energy both declined to comment on the transaction.

The sale follows on from a flurry of midstream businesses being targeted recently, down to the fact that pipeline and storage operations tend to have recurring fee-for-service revenue streams.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 72 deals targeting US crude petroleum and natural gas extraction groups announced worldwide since the beginning of 2017.

The largest of these was Oneok’s agreement to acquire Oneok Partners for around USD 17.20 billion in February in a transaction which is expected to close during the second quarter of 2017.

This was followed by Exxon Mobil’s USD 6.62 billion purchase of the Bass family's companies owning assets in the Permian Basin in January.

DCP Midstream, Clayton Williams Energy and Double Eagle Lone Star, among others, have also been targeted.

© Zephus Ltd