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Southcross Overwhelmingly Votes to Merge with American Midstream

American Midstream Partners LP (AMID) is close to creating a Gulf Coast energy powerhouse after Southcross Energy Partners LP unitholders approved a proposed merger.

During a special meeting of Southcross unitholders on Tuesday, investors voted on merger-related proposals, which included the merger and a nonbinding advisory vote on merger compensation. The merger proposal passed with a vote of more than 95% by nonaffiliated unitholders, representing about 64% of all their outstanding units. A majority of the nonaffiliated unitholders also approved the advisory merger compensation proposal.

AMID, which launched the tie-up last fall, now owns or has stakes in about 4,000 miles of interstate and intrastate pipelines, gas processing plants, fractionation facilities, an offshore semisubmersible floating production system and terminal sites with close to 6.7 million bbl of storage capacity.

AMID’s combined interests in the Destin and High Point pipelines offshore in the Gulf of Mexico (GOM) cover more than 10,000 square miles of active production, while an onshore segment of Destin provides gas transmission into the Southeast market.

Southcross, which provides midstream and natural gas liquids services, has assets in the Eagle Ford Shale in South Texas, as well as Mississippi and Alabama. Southcross also sources, purchases, transports and sells gas and liquids, with two gas processing plants, one fractionation plant and an estimated 3,100 miles of pipeline.

When completed, AMID would control an enterprise with 8,000 miles of onshore and offshore natural gas, crude and liquids pipelines, and gas and liquids processing. It would have 2.5 Bcf/d of transmission capacity, 10 processing plants with 1 Bcf/d-plus of capacity, six fractionation facilities with 111,500 b/d of capacity and 6.7 million bbl of aboveground liquids storage.

The merger is expected to be completed by the end of June.

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