Alberta Investment Management Corp (AIMCo) has agreed to acquire an ownership stake in Howard Energy Partners (HEP), a San Antonio, Texas-based diversified midstream company. The deal, expected to close in Q1 2017, will see AIMCo take an interest of about 28 percent, making the pension fund manager the second largest unit-holder in the company. The seller is EnLink Midstream Partners, which has backed HEP since its founding in mid-2011. The transaction, the terms of which were not disclosed, follows AIMCo’s initial commitment in August of up to US$500 million of Series B preferred units of HEP.
AIMCo Acquires Ownership Stake in Howard Energy Partners
EDMONTON, Dec. 20, 2016 /PRNewswire/ – Alberta Investment Management Corporation (“AIMCo”), on behalf of certain of its clients, is pleased to announce that it has agreed to acquire an ownership stake in Howard Energy Partners from EnLink Midstream Partners, LP (NYSE: ENLK). The investment, representing an ownership stake of approximately 28% of Howard Energy Partners, makes AIMCo the second largest unitholder in the company. The transaction is expected to close during the first quarter of 2017, subject to customary closing conditions, including regulatory approvals.
The transaction follows AIMCo’s initial investment in August 2016, which allowed for the purchase of up to US$500 million of Series B Preferred Units (Preferred Units) of Howard Energy Partners.
Howard Energy Partners is a diversified, growth-oriented midstream provider with assets in the Eagle Ford Shale region of South Texas, along the Gulf Coast of Texas, as well as in the Marcellus Shale region in Pennsylvania. The investment represents a compelling opportunity for AIMCo’s clients to participate in an attractive midstream portfolio with exposure to high demand markets. It is supported by a high quality management team with a demonstrated track record of execution and a robust project pipeline that will produce stable, fee-based cash flows.
Commenting on the investment, Kevin Uebelein, AIMCo Chief Executive Officer said, “AIMCo is very pleased to have the opportunity to increase our investment in Howard Energy Partners. Since our preferred investment in August, we have forged a strong working relationship with Howard Energy Partners’ management team, as well as with the other investment partners, and we are confident in their opportunities for continued growth in the future.”
Evercore served as financial advisor and Kirkland & Ellis LLP served as legal counsel to AIMCo.
About Alberta Investment Management Corporation (AIMCo)
AIMCo is one of Canada’s largest and most diversified institutional investment managers with more than $90 billion of assets under management. AIMCo was established on January 1, 2008 with a mandate to provide superior long-term investment results for its clients. AIMCo operates at arms-length from the Government of Alberta and invests globally on behalf of 31 pension, endowment and government funds in the Province of Alberta. For more information on AIMCo please visit www.aimco.alberta.ca.
About the EnLink Midstream Companies
EnLink Midstream is publicly traded through two entities: EnLink Midstream, LLC (NYSE: ENLC), the publicly traded general partner entity, and EnLink Midstream Partners, LP (NYSE: ENLK), the master limited partnership entity. EnLink Midstream is a leading, integrated midstream company with a diverse geographic footprint and a strong financial foundation, delivering tailored customer solutions for sustainable growth.
EnLink Midstream’s assets are located in many of North America’s premier oil and gas regions, including Oklahoma’s Midcontinent, the Permian Basin, and the Gulf Coast region. Based in Dallas, Texas, EnLink Midstream’s assets include approximately 11,000 miles of gathering and transportation pipelines, 21 processing plants with approximately 4.4 billion cubic feet per day of processing capacity, seven fractionators with approximately 260,000 barrels per day of fractionation capacity, as well as barge and rail terminals, product storage facilities, purchase and marketing capabilities, brine disposal wells, an extensive crude oil trucking fleet, and equity investments in certain private midstream companies.
Additional information about the EnLink companies can be found at www.EnLink.com.
About Howard Energy Partners
San Antonio-based, Howard Midstream Energy Partners, LLC dba Howard Energy Partners is an independent midstream energy company, owning and operating natural gas gathering and transportation pipelines, natural gas liquids processing plants, rail facilities, liquid storage terminals, deep-water port facilities and other related midstream assets in Texas and Pennsylvania. The company has corporate offices in San Antonio, Houston and Mexico City. For more information on Howard Energy Partners, please visit our website www.howardenergypartners.com.
Photo courtesy of Howard Energy Partners