PAA Natural Gas To Acquire SG Resources: PAA Natural Gas is Expanding its Business

Pages: 7 Published: February 01, 2011 Report Code: GDGE0264MA

  • Overview
  • Contents
  • Tables
  • Figures
  • Listen

PAA Natural Gas Storage, L.P. (PAA Natural Gas), a company engaged in the development and operation of natural gas storage facilities, entered into an agreement to acquire SG Resources Mississippi, LLC (SG Resources), a company engaged in the storage of natural gas storage, for a purchase consideration of $750m. SG Resources owns and operates an underground natural gas storage facility known as the Southern Pines Energy Center located in Greene County, Mississippi, approximately 60 miles north of Pascagoula and 30 miles east of Hattiesburg. The facility is permitted for 40 bcf of working capacity from four storage caverns. PAA Natural Gas has arranged financing of $800m to fund the acquisition. This financing is composed of $600m of equity of which approximately $262m will be provided by a private placement of PAA Natural Gas units to funds managed by Kayne Anderson Capital Advisors, Tortoise Capital, ClearBridge Advisors and other investors, the remaining $338m of equity capital, including the 2% general partner contribution. Plains All American will also provide $200m of debt financing to PNG. Simmons & Company International Limited and SunTrust Robinson Humphrey, Inc. are acting as financial advisors to PAA Natural Gas in connection with the transaction. The transaction is expected to close during the first quarter of 2011, subject to regulatory approvals. The transaction implies a deal value of $18.75 per mcf of working gas capacity


Rationale behind PAA Natural Gas is to enhance its core business

Strategic Benefits for the companies involved

Geography covered -US, Deal Financials and Valuations

Information on PAA Natural Gas and SG Resources

Reasons to Buy

Develop a sound understanding of the major M&A's, Partnerships, And Joint Ventures taking place in Asian Oil & Gas industry

Identify the most lucrative segments to leverage on the growth oppurtunities available in the Asian oil & gas market

Get a detailed analysis of a deal to enable you to take better decisions

Table of Contents

1 Table of Contents 1

1.1 List of Tables 1

1.2 List of Figures 1

2 PAA Natural Gas To Acquire SG Resources 1

2.1 Deal Overview 1

2.2 Deal in Brief 1

2.3 Paa Natural Gas is a Wholly Owned Subsidiary of PAA Pipelines 2

2.4 PAA Natural Gas Intends to Grow by Acquiring SG Resources’ 2

2.5 SG Resources has Significant Operations In Underground Natural Gas Storage Facility 3

2.6 Deal Financials and Valuations 3

2.6.1 Companies Involved 3

2.6.2 Deal Financials 3

2.6.3 Deal Rationale 3

2.6.4 Advisor Information 4

2.6.5 Detailed Target Company Information 4

2.6.6 Storage Capacity Information 4

2.6.7 Transaction Implied Values 4

2.6.8 Detailed Acquirer Information 4

3 Appendix 4

3.1 Methodology 4

3.1.1 Coverage 4

3.1.2 Secondary Research 5

3.1.3 Primary Research 5

3.1.4 Expert Panel Validation 5

3.2 Contact Us 5

3.3 Disclaimer 5

List of Tables

Table 1: Companies Involved 3

Table 2: Financials of the Deal 3

Table 3: Advisor Information 4

Table 4: Target Information 4

Table 5: Target’s Storage Capacity Information 4

Table 6: Company Valuation Multiples 4

Table 7: Acquirer Information 4

List of Figures

Figure 1: PAA Pipelines, Operations Map 2

Figure 2: Southern Pines, Operations Map 2

Figure 3: SG Resources, Operations Map 3


Can be used by individual purchaser only


Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company

Get in touch to find out about multi-purchase discounts
Tel +44 (0) 20 7947 2960

GDPR + CCPA Compliant

Personal and transaction information are kept safe from unauthorised use.

Recently Viewed Reports

Looking to stay on top of industry & market trends?

Sign up to receive regular alerts for our latest analysis and reports. No matter your industry focus, you can keep your finger on the pulse with our timely updates.