GIP affiliates close $3.125bn acquisition of interests in EnLink Midstream

Affiliates of independent infrastructure fund manager Global Infrastructure Partners (GIP) have closed the acquisition of all of Devon Energy’s interests in EnLink Midstream Manager (Manager), EnLink Midstream Partners (ENLK) and EnLink Midstream (ENLC) for $3.125bn.

The completion comes after Devon Energy reached an agreement for the sale last month as part of portfolio simplification initiatives and its 2020 strategic plan.

As a result of the transaction, GIP now holds a 100% equity interest in Manager, around 64% equity interest in ENLC, and about 23% of limited partner equity interest in ENLK.

EnLink president and CEO Michael Garberding said: “We are excited to commence our strategic partnership with GIP and look forward to expanding EnLink’s strong foundation together.

“EnLink’s platform, combined with GIP’s deep midstream experience and potential new sources of capital, enhances our outlook for further value creation.”

GIP will have majority voting power on both boards of directors of EnLink, with the induction of its partner William Brilliant and founding partners Matthew Harris and William Woodburn.

GIP chairman and managing partner Adebayo Ogunlesi said: “We view the EnLink investment as a significant partnership between a best-in-class management team and a committed infrastructure investor.

“We share EnLink’s vision and strategic direction, and we have strong alignment on financial priorities. We are committed to supporting EnLink’s long-term growth and success.”

Despite the sale, Devon will continue its commercial relationship with EnLink through its long-term contracts.

The companies will also work to maximise returns in the STACK, redevelop the Barnett Shale, and jointly explore new potential opportunities such as crude gathering in the Delaware Basin.