Eagle Rock Energy Partners (EROC) to Acquire Millennium Midstream Partners for $236 Million

September 16, 2008 5:15 PM EDT

Eagle Rock Energy Partners, L.P. (NASDAQ: EROC) has entered into a definitive purchase agreement on September 11, 2008 to acquire 100% of the outstanding units of Millennium Midstream Partners, L.P. (“MMP�), and thereby its ownership in MMP’s operating subsidiaries, for a total consideration of $236 million, subject to customary purchase price adjustments, in a privately-negotiated transaction.

Of the total purchase price, $181 million will be paid in cash, to be funded through the Partnership’s existing senior secured revolving credit facility, and $55 million will be paid through the issuance of four (4) million Eagle Rock common units to the sellers in the transaction at an implied value of $13.75 per unit.

Eagle Rock Energy Partners, L.P. is engaged in three main businesses: midstream business, which involves gathering, compressing, treating, processing, transporting and selling natural gas, fractionating and transporting natural gas liquids (NGLs); upstream business, comprises acquiring, developing and producing oil and natural gas working interests, and minerals business, which involves acquiring and managing fee minerals and royalty interests.[SM]

Related Categories

Mergers and Acquisitions

Stocks Mentioned

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?