DALLAS, March 1, 2015 /PRNewswire/ -- Azure Midstream
Energy, LLC ("Azure") announced the successful completion of its
acquisition of (i) 100% of Marlin Midstream GP, LLC, Marlin
Midstream Partners, LP's (Nasdaq: FISH, "Marlin", or the
"Partnership") general partner, (ii) 90% of Marlin Midstream GP,
LLC's incentive distribution rights in Marlin, and (iii) an option
to acquire 20% of NuDevco Midstream Development, LLC's 10.7 million
limited partnership units in Marlin. In a separate transaction,
Azure contributed its Legacy gathering system to Marlin for
$162.5 million in cash.
At closing, $95 million of
proceeds from the Legacy contribution was used to reduce
indebtedness on Azure's term loan. Pro forma for the transaction,
Azure has $428 million outstanding
and is nearly half way to achieving a $200
million debt reduction target in 2015.
The transformative transaction provides a pathway for additional
dropdowns and financial flexibility to execute on Azure's growth
plan, and improves Azure's access to more attractive capital.
Additionally, Azure is financially incentivized to support the
Partnership's growth through accretive dropdowns and cash flow from
its future limited partner unit ownership, as well as its
substantial ownership in Marlin's incentive distribution
rights.
"This significant transaction allows Azure to complete our goal
of becoming part of a growing, public MLP capable of providing
access to growth capital for acquisitions. Additionally, the
combination provides our customers with enhanced midstream service
offerings and presents our stake holders with an enterprise that
has increased scale, diversity and growth," said I.J. "Chip"
Berthelot, II, Chief Executive Officer and President of Azure.
About Azure Midstream Energy, LLC
Azure is a midstream company with a focus on owning, operating,
developing and acquiring midstream energy infrastructure in core
producing areas in the United
States. Azure owns 100% of Marlin Midstream GP, LLC, the
Partnership's general partner, and 90% of the incentive
distribution rights in the Partnership. In addition to its
ownership of Marlin, Azure provides natural gas gathering,
compression, treating and processing services in north Louisiana and east Texas in the prolific Haynesville and Bossier Shale formations.
www.azuremidstream.com
Cautionary Language
This press release contains forward-looking statements. These
forward-looking statements are identified as any statement that
does not relate strictly to historical or current facts. In
particular, statements, express or implied, concerning future
actions, conditions or events, future operating results or the
ability to generate revenues, income or cash flow or to make
distributions are forward-looking statements. The forward-looking
statements in this press release include statements regarding Azure
and Marlin and their respective affiliates, including statements
about (i) the benefits the transactions described herein will
provide to Azure, including the Partnership, including the ability
to successfully make future acquisitions, to maintain or increase
future distributions, and to capitalize on certain commercial and
operational synergies and (ii) the anticipated financial
performance of Azure, including the Partnership, following the
completion of the transactions. Forward-looking statements are not
guarantees of performance. They involve risks, uncertainties and
assumptions. Future actions, conditions or events and future
results of operations of Azure may differ materially from those
expressed in these forward-looking statements. Many of the factors
that will determine these results are beyond Azure's ability to
control or predict. These statements are necessarily based upon
various assumptions involving judgments with respect to the future,
including, among others, conditions in the capital and credit
markets; the ability to achieve synergies and revenue growth;
national, international, regional and local economic, competitive
and regulatory conditions and developments; technological
developments; inflation rates; interest rates; the political and
economic stability of oil producing nations; energy markets;
commodity prices; weather conditions; environmental conditions;
business and regulatory or legal decisions; the timing and success
of business development efforts; terrorism; and other
uncertainties. There is no assurance that any of the actions,
events or results of the forward-looking statements will occur, or
if any of them do, what impact they will have on Azure's results of
operations or financial condition. Because of these uncertainties,
you are cautioned not to put undue reliance on any forward-looking
statement.
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SOURCE Azure Midstream