Shell Midstream Partners, L.P.’s $1.22 Billion Acquisition of Shell’s ownership interest in Amberjack Pipeline Company LLC

The terms of the acquisition were approved by the conflicts committee of the Board of Directors of the General Partner of Shell Midstream Partners, which is composed entirely of independent directors. This committee was advised by Tudor Pickering Holt & Co. Advisors LP as to financial matters and Akin Gump Strauss Hauer & Feld LLP as to legal matters.

Shell Midstream Partners, L.P. (NYSE: SHLX) entered into a purchase and sale agreement to acquire Shell’s ownership interest in Amberjack Pipeline Company LLC, which is comprised of 75% of Amberjack Series A and 50% of Amberjack Series B for $1.22 billion.

Shell Midstream Partners’ share of Amberjack’s annualized net income estimated using the second quarter of 2018 forecast is nearly $120 million with the second quarter dividend estimated to be about $34 million. Following the completion of anticipated growth projects, our share of Amberjack’s net income is expected to increase to an annual run rate of approximately $145 million by the end of 2018 with an associated quarterly dividend of approximately $40 million. Shell Midstream Partners plans to fund this acquisition with borrowings under existing credit facilities. The acquisition is expected to close on or around May 11, 2018, subject to customary closing conditions.

Akin Gump oil and gas partners John Goodgame (Picture) and Lisa Hearn led the team advising Shell Midstream. They were joined by tax partner Alison Chen, oil and gas associate Levi Stoneking, environment and natural resources senior counsel Andrew Oelz and energy regulation, markets and enforcement senior counsel Vera Neinast.

 

Involved fees earner: John Goodgame – Akin Gump; Lisa Leiman Hearn – Akin Gump; Levi Stoneking – Akin Gump; Alison Chen – Akin Gump; Andrew Oelz – Akin Gump; Vera Neinast – Akin Gump;

Law Firms: Akin Gump;

Clients: Shell Midstream Partners, L.P.;