Akron Beacon Journal staff report
Two companies involved in pipelines and processing facilities in eastern Ohio are divesting.
Houston-based EV Energy Partners LP said Tuesday that it intends to divest its 9 percent ownership in Cardinal Gas Services LLC.
That interest was being acquired by South Korea’s E1 Corp. and a South Korean consortium led by Samchully for a reported $162 million, with a purchase price adjustment of about $18 million, EV Energy Partners said.
The deal is expected to close in mid-October, pending regulatory approval, tag-along rights and approval of the other member of Cardinal Gas Services: Oklahoma-based Access Midstream Partners LP.
EV Energy Partners said it intends to use the proceeds to repay money owed under its revolving credit facility.
The French energy giant Total S.A. also announced that it was divesting its 25 percent ownership in Cardinal Midstream to the same South Korean parties. The purchase price was reported as $450 million.
Total S.A. officials said the company intends to remain active as a driller with partners Chesapeake Energy and EV Energy Partners in Ohio’s Utica Shale.
Dallas-based Cardinal Gas Services was founded in 2011 by the three partners. It operates 255 miles of pipelines plus natural gas processing and fractionation facilities in eastern Ohio.