Energy Transfer Announces Sale of 32.44% Stake in Entity of Rover Pipeline Project to Blackstone Energy Partners for Approxim...
July 31 2017 - 4:30PM
Business Wire
Energy Transfer Partners, L.P. (NYSE: ETP) today announced that
its wholly owned subsidiaries, Energy Transfer Interstate Holdings,
LLC (“ETIH”) and ET Rover Pipeline LLC (“HoldCo”), have signed an
agreement with funds managed by Blackstone Energy Partners and
Blackstone Capital Partners (“Blackstone”) whereby Blackstone will
contribute approximately $1.57 billion in cash in exchange for a
49.9% interest in HoldCo. HoldCo owns a 65% interest in Rover
Pipeline LLC. HoldCo and Rover Pipeline LLC are constructing the
Rover Pipeline and will be the operator of the pipeline once in
service.
Upon completion, the Rover Pipeline will be an approximately 700
mile pipeline designed to transport 3.25 billion cubic feet of
natural gas per day from the Marcellus and Utica Shale production
areas to markets across the United States as well as into Union Gas
Dawn Hub in Ontario, Canada for redistribution back into the United
States or into the Canadian market.
The Blackstone investment will reimburse ETP for its pro rata
share of the construction costs incurred by ETP through the closing
date in connection with the Rover Pipeline, specified amounts of
future construction costs and certain additional payments to ETP.
ETP plans to use the proceeds to pay down debt and help fund its
current growth projects, thereby greatly reducing its equity
issuances. The transaction is expected to close in the fourth
quarter of 2017, subject to customary closing conditions.
Upon closing, HoldCo will be owned 50.1% by Energy Transfer and
49.9% by Blackstone.
Latham & Watkins LLP acted as legal counsel to ETP. Vinson
& Elkins acted as legal counsel to Blackstone. Blackstone was
advised by Intrepid Partners LLC and by Morgan Stanley & Co.
LLC, who was also the sole provider of the committed debt
financing.
Energy Transfer Partners, L.P. (NYSE: ETP) is a master
limited partnership that owns and operates one of the largest and
most diversified portfolios of energy assets in the United States.
Strategically positioned in all of the major U.S. production
basins, ETP owns and operates a geographically diverse portfolio of
complementary natural gas midstream, intrastate and interstate
transportation and storage assets; crude oil, natural gas liquids
(NGL) and refined product transportation and terminalling assets;
NGL fractionation; and various acquisition and marketing assets.
ETP’s general partner is owned by Energy Transfer Equity, L.P.
(NYSE: ETE). For more information, visit the Energy Transfer
Partners, L.P. website at energytransfer.com.
Energy Transfer Equity, L.P. (NYSE:ETE) is a master
limited partnership that owns the general partner and 100% of the
incentive distribution rights (IDRs) of Energy Transfer Partners,
L.P. (NYSE: ETP) and Sunoco LP (NYSE: SUN). ETE also owns Lake
Charles LNG Company. On a consolidated basis, ETE's family of
companies owns and operates a diverse portfolio of natural gas,
natural gas liquids, crude oil and refined products assets, as well
as retail and wholesale motor fuel operations and LNG terminalling.
For more information, visit the Energy Transfer Equity, L.P.
website at energytransfer.com.
Forward-Looking Statements
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject
to a variety of known and unknown risks, uncertainties, and other
factors that are difficult to predict and many of which are beyond
management’s control. These risks and uncertainties include the
risks that the proposed transaction may not be consummated or the
benefits contemplated therefrom may not be realized. An extensive
list of other factors that can affect ETP’s future results are
discussed in its Annual Reports on Form 10-K and other documents
filed from time to time with the Securities and Exchange
Commission. Except as required by law, ETP undertakes no obligation
to update or revise any forward-looking statement to reflect new
information or events.
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version on businesswire.com: http://www.businesswire.com/news/home/20170731006176/en/
Energy Transfer Partners, L.P.Investor Relations:Lyndsay Hannah,
Brent Ratliff, Helen Ryoo, 214-981-0795orMedia Relations:Vicki
Granado, Lisa Dillinger, 214-840-5820
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