Two major acquisitions
The April acquisition comprised 337 compression units with a total horsepower of ~440,000 for ~$351 million. The units that EXLP acquired are at the following locations:
- Permian Basin Shale
- Eagle Ford Formation
- Barnett Shale
- Mississippi Lime
- Granite Wash
- Woodford Shale
- Haynesville Shale
- Niobrara Basins
For the acquired horsepower of ~444,000, EXLP entered into a seven-year contract with Access Midstream Partners, now merged into Williams Partners (WPZ).
In August 2014, EXLP acquired an additional 162 natural gas compression assets from MidCon, worth ~$135 million, with a total horsepower of ~110,000 in the Fayetteville Shale. The majority of the 110,000 horsepower is under a five-year contract.
Both acquisitions contributed to a strong fourth quarter. The company saw a sequential revenue growth of 5% and a year-over-year growth of 32% as a result of these acquisitions and organic growth.
Acquisitions are one of EXLP’s main strategies to grow its business. The following part talks about EXLP’s major growth strategies.
A company similar in structure to EXLP is Williams Partners (WPZ), an MLP that was formed after Access Midstream Partners merged with Williams. WPZ’s general partner is owned by Williams Companies Inc. (WMB).