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.