From the Field
Apache to form $3.5-bln midstream partnership
HOUSTON, August 9, 2018 – Apache Corporation and investment firm Kayne Anderson Acquisition Corporation have struck a deal to form a USD 3.5-billion midstream company, Apache announced late on Wednesday.
Kayne Anderson will contribute USD 952 million while Apache will assign to the new company, Altus Midstream, its midstream assets at the Alpine High acreage in the Permian Basin, the statement added. Apache will own 71% of Altus Midstream, with an option to increase that share to 74%.
“For Apache, this is a very strategic transaction with a world-class partner at an attractive valuation,” said John Christmann IV, the company’s president and CEO. “Since our discovery of Alpine High, we have invested nearly USD 1 billion in an extensive network of fit-for-purpose infrastructure to meet the current and future processing and transport needs of the play.”