Altus Midstream Company Acquires 15 Percent of Gulf Coast Express Pipeline
December 19 2018 - 7:30AM
Altus Midstream Company (Nasdaq: ALTM, ALTMW) today announced its
subsidiary, Altus Midstream LP, has exercised and closed its option
with Kinder Morgan Texas Pipeline LLC (Kinder Morgan) to acquire a
15 percent equity interest in the Gulf Coast Express Pipeline
Project (GCX). The approximately $1.75 billion project is designed
to transport up to 1.98 billion cubic feet (BCF) of natural gas per
day from the Waha Hub and other points in the Permian Basin to the
Agua Dulce Hub near the Texas Gulf Coast. GCX is under construction
and expected to enter service in October 2019 pending regulatory
approvals. Kinder Morgan (NYSE: KMI) now owns a 35 percent equity
interest in the project after the closing of the Altus Midstream
option. Kinder Morgan is also constructing and operating the
pipeline. Subsidiaries and/or affiliates of DCP Midstream (NYSE:
DCP) and Targa Resources Corp. (NYSE: TRGP) each hold a 25 percent
equity interest in GCX.
“We are excited to participate in the Gulf Coast Express
Project; the pipeline will serve as a critical transportation
outlet for Permian Basin natural gas, and the pipeline capacity is
fully subscribed by long-term minimum volume commitments. With our
purchase of a 15 percent interest in GCX, we’ve taken a major step
in executing on our vision of being the only publicly traded,
pure-play, Permian Basin C-corporation with wellhead-to-water
connectivity. The access GCX provides to the natural gas hub at
Agua Dulce will allow us to participate in the full Permian-to-Gulf
Coast midstream value chain,” said Brian Freed, Altus Midstream CEO
and president. “With four additional equity options in top-tier,
Permian Basin pipeline projects and our substantial gathering and
processing system built to serve the world-class Alpine High play,
we are well-positioned for long-term growth.”
Altus Midstream and/or its subsidiaries hold options to purchase
equity ownership in four other planned pipelines, including:
- Salt Creek NGL Line: Option for 50 percent
interest in an NGL header from Alpine High to Waha; operated by
Salt Creek Midstream, expected in-service date in the first quarter
of 2019.
- Shin Oak: Option for up to 33 percent interest
in a long-haul NGL line to Mont Belvieu; operated by Enterprise
Products Partners, expected in-service date in the second quarter
of 2019.
- EPIC Crude: Option for up to 15 percent
interest in a crude oil pipeline to Corpus Christi; operated by
EPIC Midstream Holdings, expected in-service date in the first
quarter of 2020.
- Permian Highway: Option for up to 33 percent
interest in a proposed natural gas pipeline to Katy/Agua Dulce;
operated by Kinder Morgan, expected in-service date in the fourth
quarter of 2020.
About Altus Midstream Company
Altus Midstream Company is a pure-play, Permian Basin midstream
C-corporation. Altus Midstream and/or its subsidiaries
own substantially all of the gas gathering,
processing and transportation assets servicing Apache
Corporation’s production in the Alpine High play in
the Delaware Basin. Altus Midstream posts announcements,
operational updates, investor information and press releases on its
website, www.altusmidstream.com.
Forward-looking statements
This news release includes certain statements that may
constitute “forward-looking statements” for purposes of the federal
securities laws. Forward-looking statements include, but are not
limited to, statements that refer to projections, forecasts or
other characterizations of future events or circumstances,
including any underlying assumptions. The words “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intends,”
“may,” “might,” “plan,” “seeks,” “possible,” “potential,”
“predict,” “project,” “guidance,” “outlook,” “should,” “would,”
“will,” and similar expressions may identify forward-looking
statements, but the absence of these words does not mean that a
statement is not forward-looking. These statements include, but are
not limited to, statements about future plans, expectations, and
objectives for Altus Midstream’s and Apache’s operations, including
statements about our strategy, future operations, financial
position, estimated revenues and losses, projected costs,
prospects, plans, and objectives of management. While
forward-looking statements are based on assumptions and analyses
made by us that we believe to be reasonable under the
circumstances, whether actual results and developments will meet
our expectations and predictions depend on a number of risks and
uncertainties which could cause our actual results, performance,
and financial condition to differ materially from our expectations.
See "Risk Factors" in our Definitive Proxy Statement
dated October 22, 2018 filed with the Securities and
Exchange Commission for a discussion of risk factors that
affect our business. Any forward-looking statement made by us in
this news release speaks only as of the date on which it is made.
Factors or events that could cause our actual results to differ may
emerge from time to time, and it is not possible for us to predict
all of them. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future development or otherwise, except as may be required by
law.
Contacts
Media: |
(713)
296-7276 Phil West |
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Investors: |
(281)
302-2286 Gary Clark |
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Websites: |
www.altusmidstream.com |
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