logo
Plus   Neg
Share
Email

Apache To Contribute Its Midstream Assets At Alpine High To Altus Midstream

Apache Corp. (APA) and Kayne Anderson Acquisition Corp. have announced an agreement pursuant to which Apache will contribute its midstream assets at Alpine High to Altus Midstream LP, a partnership jointly owned by Apache and KAAC. At closing, KAAC will be renamed Altus Midstream Company.

Altus Midstream will have an estimated market capitalization of $3.5 billion at formation, assuming 354.4 million common shares outstanding at a $10 share price. Apache will receive 251.9 million shares and own 71.1 percent of Altus Midstream. KAAC will contribute approximately $952 million in cash at formation, which is composed of proceeds from KAAC's initial public offering of $380 million and proceeds from the private placement of Class A shares of $572 million. KAAC has entered into agreements to sell approximately 57.2 million shares of its class A common stock at a price of $10 per share in a private placement.

Brian Freed, Apache's senior vice president, Midstream and Marketing, will become the chief executive officer of the new company. The closing of the transaction is expected in the fourth quarter of 2018, at which time KAAC will trade on the NASDAQ under the name Altus Midstream Company with a new ticker symbol.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
PG&E agreed to pay around $13.5 billion to settle all individual claims related to California wildfires, due to which the electric utility had to file for bankruptcy. With the Bankruptcy Court's approval of the settlement agreement, PG&E hopes to emerge from Chapter 11 by the June 30, 2020 deadline to participate in the State of California's go-forward wildfire fund. Airbnb has introduced few new rules to control parties and nuisances amidst the backlash the service received after the Halloween shooting at an Airbnb rental in a San Francisco. San Francisco-based Airbnb said it is banning "open invite" parties at all of its accommodations. The company is also banning... The U.S. Food and Drug Administration has approved three generic versions of Novartis' Gilenya capsule for treating relapsing forms of multiple sclerosis. "Approving safe and effective generics so patients have more treatment options continues to be a priority for the FDA," said Janet Woodcock, director...
RELATED NEWS
Follow RTT
>