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.
EnLink MidstreamJill McMillan,
214-721-9271Director, Public & Industry
AffairsJill.McMillan@enlink.com
Devon Energy (NYSE:DVN)
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