Copano Energy LLC Friday closed its previously announced acquisition of Denver-based Cantera Natural Gas LLC for $612.6 million in cash (including $50.1 million of estimated net working capital and other adjustments) and 3,245,817 Copano Class D units issued to the seller in a private placement.
The deal was announced in September (see Daily GPI, Sept. 5).
Cantera’s assets consist primarily of a 51% managing member interest in Bighorn Gas Gathering LLC and a 37.04% managing member interest in Fort Union Gas Gathering LLC, which operate natural gas pipeline systems in Wyoming’s Powder River Basin. The Bighorn system includes approximately 238 miles of gathering pipelines, which deliver gas into the Fort Union system. The Fort Union system consists of an approximately 105-mile, 24-inch diameter pipeline with a 62-mile loop.
“We look forward to working with our new team in Denver to serve producers in the Powder River Basin as we continue to build Copano on a combined basis,” said Copano CEO John Eckel.
The cash portion of the acquisition price was funded through a previously announced $335 million private placement of equity securities, and borrowings under an expanded $550 million revolving credit facility led by Bank of America NA, both of which also closed Friday.
Houston-based Copano is a midstream gas company with gathering, intrastate pipeline and processing assets in Oklahoma, Texas and Wyoming.
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