Boardwalk Pipeline Partners, LP (NYSE: BWP) (“Boardwalk”) announced today that Boardwalk Acquisition Company, LLC, a joint venture with an affiliate of its general partner, has completed the previously announced acquisition of PL Midstream LLC (“PL Midstream”) from PL Logistics LLC, a portfolio company of Lindsay Goldberg, LLC, for approximately $625 million, subject to customary adjustments.
“Completing this acquisition strengthens our position as a diversified midstream energy company and further enhances our growth opportunities,” stated Stan Horton, Boardwalk’s President and CEO. “PL Midstream is a rapidly growing company with strategically-located assets, a strong management team, attractive and long-term contracts, and significant growth opportunities. We are delighted to have PL Midstream join the Boardwalk team.”
PL Midstream provides salt-dome storage, pipeline transportation, fractionation and brine supply services for producers and consumers of petrochemicals, natural gas liquids (NGLs) and natural gas through two hubs in southern Louisiana, the Choctaw Hub in the Mississippi River Corridor and the Sulphur Hub in the Lake Charles area. These assets represent approximately 53.5 million barrels of salt dome storage capacity, including 11.2 bcf of working natural gas storage capacity; significant brine supply infrastructure; and more than 240 miles of pipeline transportation assets, including the most extensive ethylene distribution system in Louisiana.
Boardwalk Acquisition Company, LLC funded this acquisition with proceeds from a $225 million, 5-year bank loan and equity contributions from Boardwalk and an affiliate of its general partner, Boardwalk Pipelines Holding Corp. (BPHC), which is a wholly-owned subsidiary of Loews Corporation (NYSE: L). BPHC and Boardwalk own 67% and 33% of the joint venture, respectively.About Boardwalk Pipeline Partners, LP Boardwalk Pipeline Partners, LP (NYSE: BWP) is a midstream master limited partnership that provides transportation, storage, gathering and processing of natural gas and liquids for its customers. Boardwalk and its affiliates operate approximately 14,540 miles of pipelines and underground storage caverns with an aggregate working gas capacity of approximately 197 billion cubic feet (Bcf) and liquids capacity of approximately 20 million barrels. Boardwalk is a subsidiary of Loews Corporation (NYSE: L), which holds 58% of Boardwalk's equity, excluding incentive distribution rights. Forward-Looking Statements This press release contains forward-looking statements relating to expectations, plans or prospects for Boardwalk Pipeline Partners, LP and its subsidiaries. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These and other risks and uncertainties concerning Boardwalk are described in its filings with the U.S. Securities and Exchange Commission, which are available on Boardwalk's website at www.bwpmlp.com or on the SEC's website at www.sec.gov.