CorEnergy Infrastructure Trust to Acquire Liquids Gathering System from Ultra Petroleum for $225M Cash
CorEnergy Infrastructure Trust (NYSE: CORR) today announced
that it has entered into a definitive agreement to acquire a Liquids
Gathering System (“LGS”) from Ultra Petroleum Corp. (NYSE: UPL) for $225
million in cash. The LGS will continue to be operated by UPL under a
long-term triple net lease. Located in the Pinedale field in Wyoming,
the LGS is a vital component of natural gas production in one of the top
five natural gas fields in the U.S.
Prudential Capital Group, through its Dallas-based Energy Finance Group,
will contribute $30 million as a co-investor in the acquisition and
CorEnergy will contribute $130 million. The remainder of the acquisition
cost will be financed with $65 million of non-recourse debt.