NextEra Energy Partners, LP acquired NET Midstream, a private developer, owner and operator of seven long-term contracted natural gas pipeline assets located in Texas.
NextEra Energy Partners acquired NET Midstream for a total transaction value of approximately US$2.1 billion, including US $934 million in cash consideration and the assumption of approximately US$654 million in existing debt, and excluding post-closing working capital and other adjustments.
The seven natural gas pipelines serve power producers and municipalities in South Texas, processing plants and producers in the Eagle Ford Shale, and residential, commercial and industrial customers in the Houston area.
The NET Mexico Pipeline, the largest pipeline in the portfolio, provides a critical source of natural gas transportation for low-cost, U.S.-sourced shale gas to Mexico under a 20-year ship-or-pay contract with a BBB+-rated, wholly owned subsidiary of Pemex Gas y Petroquimica Basica, a division of PEMEX, the Mexican state-owned oil and gas company.
The NET Mexico Pipeline is 10% by a PEMEX subsidiary. The combined acquisition portfolio includes 3.0 billion cubic feet (Bcf) per day of ship-or-pay contracts, with on average investment-grade counterparty credit and long-term contracted assets with a 16-year average contract life. The three largest pipelines in the portfolio have planned growth and expansion projects that, if completed, are expected to provide approximately 1.0 Bcf per day of additional contracted volumes.