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SNMP: sale closed on operated production assets

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World Pipelines,

Sanchez Midstream Partners LP (SNMP or the partnership) has announced that it has closed the sale of its remaining operated production assets, which are located in Oklahoma (USA).

“The sale of our remaining operated production assets further reduces our exposure to a price-sensitive revenue stream and is consistent with our strategy of focusing on stable, fee-based midstream activities,” said Gerry Willinger, Chief Executive Officer of the general partner of SNMP.

Willinger continued: “These Oklahoma production assets were initially offered for sale in March 2015 and are considered non-core to the business of SNMP. Since we previously announced plans to sell the assets, they have been excluded from the reserves used to determine the borrowing base under our credit facility.

“While we anticipate that the sale will have no impact on our borrowing base, we expect to use the proceeds from the sale to reduce debt outstanding under our credit facility. The reduction in debt, together with lower overhead associated with operating the properties, improves our liquidity position at a time when the key components of our south Texas (USA) midstream strategy are coming together to create value for our unitholders.”

“These projects include our wholly-owned Seco pipeline, which is expected to provide dry gas takeaway capacity from the Raptor gas processing facility to premium natural gas markets in south Texas beginning later this month.”

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