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