Nextera Energy Partners LP (NYSE:NEP) said Monday it has reached an agreement to buy Meade Pipeline Co LLC for $1.37 billion, which includes an initial consideration of $1.28 billion, subject to working capital.
The deal calls for future capital contributions of roughly $90 million through 2022 tied to an expansion opportunity at the existing pipeline, NextEra said.
The funding for the expansion is expected to be financed with a total of $820 million of project debt, including a $60-million draw that is expected at the closing of the transaction and which is in addition to the $760 million in project debt.
"We are pleased to have reached a definitive agreement to acquire Meade Pipeline and its interests in the Central Penn Line, which is backed by an attractive fixed-lease payment with a high-credit quality customer, and further expand NextEra Energy Partners' investment in long-term contracted natural gas pipelines, helping mitigate any potential resource volatility in the portfolio," NextEra CEO Jim Robo said in a statement.
"Meade Pipeline is a very attractive acquisition for NextEra Energy Partners, and is expected to yield a double-digit return to NextEra Energy Partners' limited partner unitholders and generate a cash available for distribution yield of roughly 14%."
NextEra Energy Partners shares closed Friday's session higher by 0.58% at $52.40. The stock has a 52-week high of $53.90 and a 52-week low of $39.35.
Related Links:
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
