Energy Transfer Partners To Buy Certain Interests In PTXP For About $640 Mln

(RTTNews) - Energy Transfer Partners L.P. (ETP) said that it agreed to acquire certain interests in PennTex Midstream Partners LP (PTXP) from various parties for total consideration of about $640 million.

Upon closing the transaction, ETP will own 100% of the general partner of PTXP, together with all of its incentive distribution rights or IDRs, as well as 6.3 million common units and all 20 million subordinated units of PTXP, representing approximately 65 percent of the total limited partner interests in PTXP.

The acquisition consideration paid by ETP will be 50 percent ETP common units issued directly to Sellers and 50 percent cash. The cash portion of the purchase price will be funded with a combination of proceeds from common units recently issued under ETP's At-The-Market program and borrowings under its revolving credit facility. Additionally, in conjunction with the transaction, Energy Transfer Equity, L.P. (ETE) has agreed to an IDR waiver in the amount of $33 million annually that will run in perpetuity.

The transaction is expected to close in the fourth quarter of 2016, subject to customary closing conditions.