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Subsequent Event
6 Months Ended
Jun. 30, 2014
Subsequent Event  
Subsequent Event

19.  Subsequent Event

 

On July 11, 2014, the Partnership entered into a Purchase and Sale Agreement with MidCon to acquire natural gas compression assets, including a fleet of 162 compressor units, comprising approximately 110,000 horsepower, a tract of real property and the facility located thereon, a fleet of vehicles, equipment, inventory and other related property for approximately $135.0 million (the “Proposed MidCon Acquisition”). The purchase price is subject to certain closing and post-closing adjustments in accordance with the terms of the Purchase and Sale Agreement. The majority of the horsepower to be acquired is currently under a five-year contract operations services agreement with BHP Billiton Petroleum (“BHP Billiton”) to provide compression services. In connection with the acquisition, the contract operations services agreement with BHP Billiton will be assigned to the Partnership effective as of the closing. The Partnership plans to fund this acquisition with funds available under its revolving credit facility. The Proposed MidCon Acquisition, which is subject to certain closing conditions, is expected to close in the third quarter of 2014.

 

As part of the transaction, we have agreed with the Partnership that at the closing of the Proposed MidCon Acquisition, the Partnership will direct MidCon to sell to our wholly-owned subsidiary EESLP, an indirect parent company of the Partnership, certain assets to be acquired in the acquisition, including a tract of real property and the facility located thereon, a fleet of vehicles, equipment, inventory and other related property. EESLP will fund $4.1 million of the purchase price and the Partnership will fund $130.9 million of the purchase price. Each of these amounts are subject to adjustment prior to, and after, the closing of the acquisition in accordance with the terms of the Purchase and Sale Agreement.