Oklahoma City-based Enable Midstream Partners, LP has reached a $300 million deal to buy natural gas gathering and assets from Align Midstream, LLC in Northern Louisiana.
The assets are in the Cotton Valley and Haynesville plays of the Ark-La-Tex Basin and extends Enable’s footprint in areas with increasing producer activity.
Align runs nearly 190 miles of natural gas gathering pipelines across Rusk, Panola and Shelby counties in Texas and DeSoto Parish in Louisiana. It also has a cryogenic natural gas processing plant in Panola, Texas with a capacity of 100 million cubic feet a day.
“This transaction complements Enable’s midstream platform in the Ark-La-Tex Basin, and we are well-positioned to integrate and optimize these assets,” said Enable Midstream President and CEO Rod Sailor. “We are excited about the outlook for the Cotton Valley and Haynesville, and this acquisition further builds out our footprint to capture opportunities in active areas of these plays.”
While the purchase involves $300 million, Enable says it doesn’t expect heading to the capital markets this year and if anything, fits the company’s 2017 expansion capital outlook.
The Oklahoma company already owns 12,900 miles of gathering pipelines, 14 major processing plants and another 7,800 miles of interstate pipelines as well as 2,200 miles of intrastate pipelines. It also has eight storage facilities with 85.0 billion cubic feet of storage capacity.