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NJR Midstream Acquires Leaf River Energy Center for USD 367.5m
Tuesday 10 September 2019

10 September 2019 - New Jersey, US-based NJR Midstream has agreed to acquire Mississippi, US-based natural gas storage facility Leaf River Energy Center, LLC from Macquarie Infrastructure Partners, which operates within the Macquarie Infrastructure and Real Assets division of the Macquarie Group for USD 367.5m, the company said.

The agreement purchase price for Leaf River is USD 367.5m subject to certain contractual conditions. The transaction is expected to close in 2019 and supports NJR's long-term net financial earnings growth rate of 6 to 8%.

The strategically located and reliable natural gas storage facility serves expanding natural gas markets. NJR Midstream is well positioned with Leaf River to be a leading Gulf Coast service provider in one of the most significant and growing energy demand centres in the United States.

With the acquisition of Leaf River, NJR Midstream will now have ownership interests in natural gas storage facilities in the Gulf Coast and Marcellus Shale regions, with working gas capacity of more than 44 MMDth.

NJR Midstream, a business of New Jersey Resources (NYSE: NJR) provides safe and reliable natural gas and clean energy services, including transportation, distribution, asset management and home services.

Leaf River Energy Center, LLC is a division of Macquarie Infrastructure Partners, which operates within the Macquarie Infrastructure and Real Assets division of the Macquarie Group. Leaf River is located in southeastern Mississippi with unique reliability capabilities and connections to six interstate pipelines.

It consists of three salt dome caverns with a combined working natural gas storage capacity of 32.2m dekatherms (MMDth).
Details
Date Published: 10/09/2019
Target: Leaf River Energy Center
Country: USA
Deal Size: 367.5m (USD)
Sector: Petroleum/Natural Gas/Coal
Type: Corporate acquisition
Financing: Cash
Status: Agreed
Vendor: Macquarie Infrastructure Partners
Buyer: NJR Midstream
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