American Midstream — Eagle Ford Shale News

Penn Virginia Eagle Ford Operations Update - Dec 2013

Penn Virginia is selling its natural gas midstream assets in the Eagle Ford to an affiliate of ArcLight Capital Partners (American Midstream) for $100 million.

The deal includes gas gathering, a gas lift system, 119 miles of pipelines and associated facilities in Gonzales and Lavaca counties.

ArcLight has several active midstream investments and will likely make future acquisitions in the area or sell this to a larger midstream operator in the next five years.

ArcLight Capital has raised over $10 billion for energy related investments since 2001.

H. Baird Whitehead, CEO, stated, "The divestiture of our natural gas midstream assets is the first step in a series of potential divestitures which will reduce our indebtedness, improve our liquidity and fund further investment in our oily Eagle Ford Shale play."

Read the full press release at pennvirginia.com

High Point Infrastructure Partners has reached an agreement to build gathering and processing infrastructure in Gonzales County, TX. The company has reached a long-term fee-based agreement with a large operator in the area.

“We are excited to announce a long-term agreement to develop critical midstream infrastructure for a significant producer in the Eagle Ford Shale.”

— Steve Bergstrom, Chairman.

Construction will begin in mid-2013 and the facilities will be operational in early 2014. When completed, the pipelines and gathering facility will have capacity of 95,000 barrels of oil per day and 15 mmcfd of natural gas.

Watch for High Point to leverage this development into other midstream projects in the area.

High Point is the General Partner of American Midstream Partners. You can read the full press release at americanmidstream.com