Akin Gump Advises Marlin Midstream in Expansion and Change of Control Transaction with Azure Midstream Energy

(Houston) – Akin Gump advised Marlin Midstream Partners, LP in a transaction in which Azure Midstream Energy, LLC contemporaneously will acquire control of Marlin and contribute the Legacy Gathering System to Marlin for $162.5 million of consideration. As a result of this transaction, Azure will effectively acquire all of the general partner interest, 90 percent of the incentive distribution rights and a substantial number of limited partner units issued by Marlin, and Marlin will become the beneficiary of a “sponsor” owning substantial additional midstream assets, which Marlin may have the opportunity to acquire in future transactions. This transaction is expected to enhance Marlin’s scale, diversification, financial flexibility and growth potential, allowing it to compete for greenfield development and acquisition opportunities (including from Azure and third parties) across the midstream value chain.

The Legacy Gathering System consists of roughly 658 miles of high- and low-pressure gathering lines primarily under fixed-fee contracts that serve approximately 100,000 dedicated acres predominantly in the Cotton Valley formation in east Texas and northern Louisiana with access to seven major downstream markets.

The team from Akin Gump’s oil and gas practice group included partners Eric Munoz and J. Vincent Kendrick and associate Christopher Centrich.

On January 23, this deal was selected by Texas Lawyer as its Deal of the Week.

Founded in 1945, Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 900 lawyers in offices throughout the United States, Europe, Asia and the Middle East.

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