Apache Corp. will contribute its midstream assets at Alpine High to Altus Midstream LP, a partnership jointly owned by Apache and Kayne Anderson Acquisition Corp. (KAAC).
At closing, KAAC will be renamed Altus Midstream Co. Altus Midstream will be structured as a C-corporation anchored by substantially all of Apache’s gathering, processing and transportation assets at Alpine High, a world-class, unconventional resource play in the Delaware Basin.
The company will also own options for equity participation in five gas, NGL and crude oil pipeline projects from the Permian Basin to various points along the Texas Gulf Coast.
The Altus Midstream assets include rich-gas processing plants with inlet capacity of 380 million cubic feet (MMcf) per day, lean-gas treating and compression plants with inlet capacity of 400 MMcf per day, 123 miles of gathering pipelines, and 55 miles of processed gas pipelines with three market connections. By the end of 2020, Altus Midstream plans to add 1 Bcf per day of cryogenic, rich-gas processing.
Under terms of the deal, Apache will contribute about $1 billion in assets to Kayne Anderson Acquisition, which will have $900 million in cash after a private placement is complete. When the deal closes later this year, Apache will own 71.1 percent of the company.
Altus will have a market value of about $3.5 billion.
