Altus Midstream Co. acquired a stake in the Permian Highway Pipeline on May 29, joining a project aimed at easing takeaway constraints that recently sent natural gas prices in the prolific basin below zero.
Houston-based Altus said it exercised and closed its option to acquire a 26.7% equity interest in the Permian Highway Pipeline for about $161 million. The transaction was a part of the company’s formation last year by Apache Corp. and midstream investor Kayne Anderson Acquisition Corp.
Altus was structured as a C-corp anchored by substantially all of Apache’s gathering, processing and transportation assets at Alpine High, an unconventional resource play in the Delaware Basin which Apache discovered in 2016. At the time of the formation, Apache owned 71.1% of Altus with the ability to increase its ownership to about 74% subject to performance earn-outs.
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