Alberta Investment Management Corporation (AIMCo) has agreed to purchase up to US$500 million of Series B Preferred Units of Howard Energy Partners.
AIMCo completed its initial purchase of US$300 million in Preferred Units on August 22, 2016, and has committed to purchase an additional US$200 million in Preferred Units in the future.
Howard Energy Partners is a diversified, growth-oriented midstream provider with assets in the Eagle Ford Shale region of South Texas, along the Gulf Coast of Texas, as well as in the Marcellus Shale region in Pennsylvania.
The investment represents a compelling opportunity for AIMCo's clients to participate in an attractive midstream portfolio with exposure to high demand markets. It is supported by a high quality management team with a demonstrated track record of execution and a robust project pipeline that will produce stable, fee-based cash flows.
Kevin Uebelein, AIMCo Chief Executive Officer, stated:
"AIMCo is very pleased to become an important investor in Howard Energy Partners. Howard Energy Partners has set forth a plan to position the company for further growth that will see it executing on a number of key projects backed by long-term contracts with credit worthy counterparties, which when complete will contribute meaningfully to its growth as a diversified midstream company. AIMCo is looking forward to fostering a strong working relationship with management and the other investment partners."
Scott Archer, Chief Financial Officer of Howard Energy Partners adds,
"AIMCo is a global institutional investor that not only understands our business, but has the patience and vision to work alongside our team and current partners to maximize long term value for all stakeholders. We remain committed to growing Howard Energy Partners and we look forward to a productive partnership with AIMCo."