US company Energy Transfer, the developer of the proposed Lake Charles LNG export facility, said on Wednesday it would buy Enable Midstream Partners in an all-equity transaction valued at $7.2 billion.
Under the deal, Enable unitholders will receive 0.8595 of Energy Transfer’s units for each Enable unit.
In addition, each outstanding Enable Series A preferred unit will be exchanged for 0.0265 Series G preferred units of Energy Transfer.
The transaction will also include a $10 million cash payment for Enable’s general partner.
Energy Transfer says the acquisition would increase its footprint across multiple regions and provide increased connectivity for the firm’s natural gas and NGL transportation businesses.
The acquisition will also provide significant gas gathering and processing assets in the Arkoma basin across Oklahoma and Arkansas, as well as the Haynesville Shale in East Texas and North Louisiana.
Moreover, Energy Transfer said the deal would further boost its connectivity to the global LNG market and the growing global demand for natural gas as the world “transitions to cleaner power and fuel sources.”
Energy Transfer expects the combined company to generate more than $100 million of annual run-rate cost and efficiency synergies, excluding potential financial and commercial synergies.
