Inergy Midstream to Acquire Rangeland Energy for $425 Mln; Shares Spike 3%

By Staff,

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Inergy Midstream L.P. ( NRGM ) and the owner of its general partner, Inergy, L.P. ( NRGY ), announced that NRGM will purchase Rangeland Energy, LLC, the owner and operator of the COLT crude oil rail terminal, storage and pipeline facilities (the "COLT Hub") for $425 million.

Per the agreement, NRGM will sell $225 million of common units in a private placement and has obtained committed unsecured debt financing to fund the balance of the acquisition purchase price.

With 720,000 barrels of crude oil storage and two 8,700-foot rail loops, the COLT Hub can accommodate 120-car unit trains and is capable of moving more than 120,000 barrels per day by rail.

NRGY is up 2.8% at $23.36 in a 52-week range of $16.25 - $25.32. NRGY is up 5.0% at $19.98 in a 52-week range of $15.06 - $27.91.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: NRGM , NRGY

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