New-to-Houston energy co. to buy Dallas-based energy co.

lynn-bourdon-american-midstream

Lynn Bourdon, chairman, president and CEO of American Midstream Partners LP. Photo: PR Newswire

via Jack Witthaus, Houston Business Journal

A energy company that recently relocated to Houston plans to scoop up a Dallas-based energy company.

American Midstream Partners LP (NYSE: AMID), formerly based in Denver, announced it’s acquiring JP Energy Partners LP (NYSE: JPEP) in an all-stock deal, according to a release. The combined partnership is valued at around $2 billion.

JP Energy shareholders will receive $8.63 per common unit, a 14.5 percent premium to the closing price of JP Energy’s common units of $7.54 on Oct. 21.

The transaction is expected to close late this year or in early 2017, per the release. The combined company’s headquarters will be in Houston.

The beefed-up midstream company will operate in the Permian, Gulf of Mexico, Eagle Ford and Bakken regions. It will run more than 3,100 miles of gathering and transportation pipeline.

Boston-based ArcLight Capital Partners LLC, which holds stakes in both American Midstream and JP Energy, will combine the general partners of the two companies. ArcLight owns 15.6 percent of American Midstream and 19.8 percent of JP Energy as of June 30, according to Reuters.

Lynn Bourdon III — currently the chairman, president and CEO of American Midstream — will serve as chairman and CEO of the combined company, and Eric Kalamaras — currently the CFO of American Midstream — will serve as CFO.

“This transformational combination is the next logical step in expanding services from the wellhead to the end user market,” Bourdon said. “We will begin to experience the impact of our value chain growth strategy by offering customers a more competitive suite of services that enables us to capture incremental fee opportunities that maximize returns to unitholders.”

News of American Midstream’s decision to move its headquarters from Denver to the Bayou City surfaced in July. The company’s current offices in Houston are at 919 Milam St.

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