Comprehensive M&A data with integrated detailed company information

NJR to acquire Leaf River
Posted on Friday, 06 September 2019 14:36
NJR Midstream, a subsidiary of New Jersey Resources, is buying US-based Leaf River Energy Center from Macquarie Infrastructure Partners for USD 367.50 million.

The deal is expected to complete at some point in 2019.

Headquartered in Mississippi, Leaf River is a natural gas storage hub which consists of multiple salt caverns and pipeline infrastructure.

Its caverns are well-located to act as a bridge between the shale plays and the northeast, mid-Atlantic and southeast markets.

The group has a working natural gas storage capacity of 32.20 million dekatherms (MMDth) and is located in the southern part of the state, with connections to six interstate pipelines.

As a result of the acquisition, the purchaser will have ownership of natural gas facilities across the Gulf Coast and Marcellus shale regions, comprising a working gas capacity of over 44.00 MMDth.

Steve Westhoven, president of New Jersey Resources, said: “By leveraging our market expertise, NJR Midstream is well positioned with Leaf River to be a leading Gulf Coast service provider in one of the most significant and growing energy demand centres in the US.”

Furthermore, the deal will help support NJR’s long-term financial earnings growth rate of between 6.0 per cent to 8.0 per cent.

The acquiror is one of New Jersey Resources’ five primary divisions, which also include New Jersey Natural Gas, NJR Clean Energy Ventures, NJR Energy Services and NJR Home Services.

For the nine months ended 30th June 2019, its parent company generated revenue of USD 2.11 billion, down 7.0 per cent from USD 2.27 billion in the corresponding period of 2018.

Since the start of 2019, there have been 42 deals announced targeting businesses which provide pipeline transportation of natural gas, according to Zephyr, the M&A database published by Bureau van Dijk.

The largest of these was worth USD 3.27 billion and involved the Blackstone Group, via Blackstone Infrastructure Partners, acquiring Tallgrass Energy GP, as well as buying a 44.0 per cent stake in Tallgrass Energy.

© Zephus Ltd