Press release
Altus and EagleClaw Announce All-Stock Business Combination; Creates a Leading Pure-Play Permian Integrated Midstream Company With a Capital Return Focus
Combination forms the largest integrated midstream company in the Delaware Basin with an estimated enterprise value today of $9 billionThe combined company
About this update from Apa Corporation
[{"type":"text","content":"Combination forms the largest integrated midstream company in the Delaware Basin with an estimated enterprise value today of $9 billionThe combined company generates a balanced mix of earnings from midstream gathering and processing and long-haul pipeline transportation, representing approximately 65% and 35% of 2022 estimated EBITDA, respectively Operates approximately 2 Bcf per day of newly constructed cryogenic natural gas processing facilities in the Delaware Basin with more than 850,000 acres under fee-based, long-term dedications for midstream activitiesPremier portfolio of interests in four newly built, long-term contracted pipelines transporting natural gas, NGLs, and crude oil from the Permian Basin to the Gulf CoastDiverse, high-quality customer base with over 30 primarily investment grade counterparties Complementary systems and greater scale result in enhanced reliability and flexibility for customers as well as commercial and financial synergies; EBITDA synergies of at least $50 million per year projected by 2023 and approximately $175 million in cumulative capital savings over the next five yearsCommitted to maintaining Altus’ current $6 per share annual dividend through 2023, targeting 5% dividend growth thereafter; will achieve and maintain a leverage ratio of 3.5x or lessProven, commercially-oriented management team dedicated to delivering best-in-class returns for all stakeholders – investors, employees, customers, and their associated communities HOUSTON, Oct. 21, 2021 (GLOBE NEWSWIRE) -- Altus Midstream Company (Nasdaq: ALTM) (“Altus”) announced today it will combine with privately-owned BCP Raptor Holdco LP (“BCP”) in an all-stock transaction. BCP is the parent company of EagleClaw Midstream, which includes EagleClaw Midstream Ventures, the Caprock Midstream and Pinnacle Midstream businesses, and a 26.7% interest in the Permian Highway Pipeline. As consideration for the transaction, Altus will issue 50 million Class C common shares (and its subsidiary, Altus Midstream LP will issue corresponding common units) to BCP’s unitholders, principally funds affiliated with Blackstone and I Squared Capital, resulting in combined ownership of approximately 75% of the pro forma company. The ownership by Apache Midstream LLC, a subsidiary of Apache Corporation (“Apache”), will be reduced to approximately 20%, and existin...