Altus Midstream completed the acquisition of Apache midstream assets at Alpine High for $3.5bn.

Altus Midstream to acquire midstream assets at Alpine High, a partnership jointly owned by Apache and KAAC. At closing, KAAC was renamed to Altus Midstream. Altus Midstream will have an estimated market capitalization of $3.5bn at formation, assuming 354.4m common shares outstanding at a $10 share price. Apache received 251.9m shares and own 71.1% of Altus Midstream. KAAC contributed approximately $952m in cash at formation, which is composed of proceeds from KAAC’s initial public offering of $380m and proceeds from the private placement of Class A shares of $572m. Altus Midstream will be structured as a C-corporation anchored by substantially all of Apache’s gathering, processing and transportation assets at Alpine High, a world-class, unconventional resource play in the Delaware Basin. The company will also own options for equity participation in five gas, NGL and crude oil pipeline projects from the Permian Basin to various points along the Texas Gulf Coast. “The transaction with Kayne Anderson Acquisition Corp. creates a premier midstream enterprise to service Alpine High, an enormous, highly economic upstream resource base in the Permian Basin, the most active oil and gas region in the world. Alpine High contains more than 5k feet of vertical hydrocarbon bearing formations across approximately 340k contiguous net acres,” John Christmann IV, Apache chief executive officer and president.