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Laredo closes agreement over Medallion pipeline ownership interests

Published by
World Pipelines,

Laredo Petroleum, Inc. (Laredo) has announced the closing of the previously announced agreement among an affiliate of Global Infrastructure Partners (GIP) – Laredo’s wholly-owned subsidiary Laredo Midstream Services, LLC (LMS) – and Medallion Midstream Holdings, LLC, which is owned and controlled by an affiliate of The Energy & Minerals Group.

Through the agreement, GIP purchased 100% of the ownership interests in Medallion Gathering & Processing, LLC (MGP) for a cash purchase price of US$1.825 billion, plus potential additional cash consideration.

MGP is the sole owner of the Medallion-Midland Basin pipeline system. LMS received net proceeds of approximately US$830 million for its 49% interest in MGP, after deduction of its proportionate share of fees and other expenses, but prior to customary post-closing adjustments and taxes. Laredo intends to use the net proceeds from the sale primarily to repay debt.

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