DENVER — QEP Midstream Partners, LP (NYSE:QEPM) (the “Partnership”) today announced that it has acquired 40% of the outstanding membership interest in Green River Processing, LLC (“Green River Processing”) for $230 million in cash from QEP Field Services Company, a wholly owned subsidiary of QEP Resources, Inc. (NYSE: QEP) (“QEP”). This transaction represents the Partnership’s first acquisition following its initial public offering in August 2013. The acquisition is expected to be immediately accretive to the Partnership’s distributable cash flow per unit. The Partnership used cash on hand and proceeds from its $500 million credit facility to fund the acquisition.
Green River Processing owns the Blacks Fork natural gas processing complex and the Emigrant Trail natural gas processing plant located in southwest Wyoming. These assets consist of four natural gas processing plants with total processing capacity of 890 MMcf per day, and natural gas liquids (“NGLs”) fractionation capacity of 15,000 bbl per day with interconnects to six interstate natural gas pipelines, and direct pipeline access to the Mt. Belvieu and Conway NGL markets. In 2013, total natural gas inlet volumes for Green River Processing were approximately 201 million MMBtu, of which 65% were processed under fee-based processing agreements and 35% were processed under keep-whole processing agreements.
The acquisition closed on July 1, 2014 with an effective date of July 1, 2014. The terms of the acquisition were approved by the Board of Directors of the General Partner, based on the approval and recommendation of the Conflicts Committee, which is comprised entirely of independent directors. The Conflicts Committee was advised by Tudor, Pickering, Holt & Co. regarding financial matters and Andrews Kurth LLP regarding legal matters.
Advertisement - Story continues below...
swnow news 
