American Midstream Partners to Acquire Southcross Energy November 1, 2017
Compelling Strategic Rationale American Midstream Partners to acquire Southcross Holdings and Southcross Energy Partners, LP, creating a premier fully integrated growth platform Creates fully integrated midstream platform linking…
Strategic System Integration Drives Value Extends AMIDs customer reach to numerous producers (25+) in the core of the Eagle Ford and to key end users in high-growth downstream markets Connects Eagle Ford producers with critical…
Transaction Highlights and Pro Forma Organizational Structure Summary Pro Forma Organization AMID to acquire 100% of Southcross Holdings and Southcross Energy Partners A-II Holders (SXE) and affiliates Upfront total…
AMID and SXE Unitholder Benefits AMID Consideration to Southcross Holdings and SXE Attractive Financial Benefits 3.4 million AMID common units, subject to Immediately accretive to AMIDs DCF customary closing adjustments per unit.…
Right Combination at the Right Time: A Value Chain Story Combines two complementary franchises positioned to generate stable cash flows + Natural Gas, NGL & Crude Pipelines (miles) 8,427 Natural Gas Treating & Processing Capacity…
Combination Creates a Synergistic Gulf Coast Footprint Transaction enhances value chain in AMIDs core areas For internal use only 7
Substantial Optionality to Connect Supply with Demand Integrated midstream platform facilitates movement of natural gas, crude oil and NGLs to high-growth demand markets along the Gulf Coast Link key sources of supply (Permian,…
Connecting High-Quality Customers to Robust Gulf Coast Demand Texas Gulf Coast NGL and natural gas is expected to see 10-year demand growth of 75% and 30%, respectively Eagle Ford Producers Gulf Coast Demand Pull Hub Gulf of Mexico…
AMIDs Repositioning Underway: Proven Track Record of Success Completed approximately 1.1 billion of growth transactions at accretive valuations Goal Complete Opportunity / Action Result Southcross Combination Announced Create 3…
Builds Platform for Significant Growth Opportunities Establishes sustainable growth trajectory and expansion in core areas 1 2 Dropdowns or Joint Ventures with Affiliates Organic Growth Projects ArcLight and affiliates Ability to…
Strengthens Financial Flexibility Combined company is expected to generate over 300 million in annualized 2018 Adjusted EBITDA Immediately accretive to AMID DCF per unit Attractive Low single-digit accretion in 2018 and 2019,…
Benefits of the Combined Partnerships Approximately 3 billion pro forma enterprise value Increases Scale Attractive acquisition price at single-digit EBITDA multiple Positions for growth opportunities, targeted acquisitions and…