Spectra Energy Partners Acquires Additional 24.5% Interest In Gulfstream Natural Gas System From Spectra Energy Corp: Spectra Energy Partners is Enhancing its Portfolio

Spectra Energy Partners Acquires Additional 24.5% Interest In Gulfstream Natural Gas System From Spectra Energy Corp: Spectra Energy Partners is Enhancing its Portfolio - Deal Analysis From GlobalData

Summary

Spectra Energy Partners, LP (Spectra Energy Partners), an operator of natural gas pipelines and storage facilities, completed the acquisition of 24.5% interest in Gulfstream Natural Gas System, L.L.C. (Gulfstream Natural Gas), a company engaged in the supply of natural gas through underground transportation system and pipelines, from Spectra Energy Corporation (Spectra Energy Corp), a provider of natural gas infrastructure, for a purchase consideration of $330m. The consideration includes $66m in newly-issued partnership units, the assumption of approximately $7.4m in debt owed to a subsidiary of Spectra Energy Corp, and $256.6m in cash available for distribution. Following the completion of the transaction, Spectra Energy Partners will hold a 49% stake in Gulfstream Natural Gas. Gulfstream Natural Gas owns a 745-mile interstate natural gas transportation system, which extends from Pascagoula, Mississippi, and Mobile, Alaska, across the Gulf of Mexico into Florida and has market delivery capability of 1,260 million cubic feet per day (MMcf/d) of natural gas. Tudor, Pickering, Holt & Co. Securities, Inc. acted as financial advisor and Andrews & Kurth LLP acted as legal advisor for Spectra Energy Partners with respect to the transaction. The transaction implies a deal value of $1.07 per cubic feet of daily throughput capacity

Scope

• The acquisition further enables Spectra Energy Partners' profile of steady, fee-based cash flows and aligns nicely with its strategy to deliver value to its investors

Reasons to buy

• Develop a sound understanding of the major M&A's, Partnerships, And Joint Ventures taking place in North American Oil & Gas industry
• Identify the most lucrative segments to leverage on the growth oppurtunities available in the US oil & gas market
• Get a detailed analysis of a deal to enable you to take better decisions

Contents

1 TABLE OF CONTENTS

1.1 List of Tables
1.2 List of Figures

2 SPECTRA ENERGY PARTNERS ACQUIRES ADDITIONAL 24.5% INTEREST IN GULFSTREAM NATURAL GAS SYSTEM FROM SPECTRA ENERGY CORP

2.1 Deal Overview
2.2 Deal in Brief
2.3 Spectra Energy Corp operates in three areas of the natural gas industry: gathering and processing, transmission and storage, and distribution
2.4 Spectra Energy Partners is Raising its Stake in Gulfstream Natural Gas System to Enhance its Portfolio
2.5 Gulfstream Natural Gas Includes Pascagoula, Mississippi and Mobile, Alabama Regions across the Gulf of Mexico and Florida
2.6 Spectra Energy Partners is Expanding its Business through Acquisitions
2.7 Deal Financials and Valuations

3 APPENDIX

3.1 Methodology
3.2 Contact Us
3.3 Disclaimer

LIST OF TABLES

Table 1: Companies Involved
Table 2: Financials of the Deal
Table 3: Advisor Information
Table 4: Target Information
Table 5: Target’s Pipeline Capacity Information
Table 6: Company Valuation Multiples
Table 7: Acquirer Information
Table 8: Vendor Information

LIST OF FIGURES

Figure 1: Spectra Energy Partners, Operations Map
Figure 2: Gulfstream Natural Gas System
Figure 3: Gulfstream Natural Gas System Skip to top