Apache Corp. and the special purpose acquisition company Kayne Anderson Acquisition Corp. completed the formation of a publicly traded, pure-play Permian Basin midstream company that will have operations focused on the Alpine High resource play.
As a result of the deal, Kayne Anderson changed its name to Altus Midstream Co., and its common stock will begin trading on the Nasdaq market under the symbol ALTM, according to a Nov. 12 news release. The company owns gas gathering, processing and transportation assets serving Apache's production in the Delaware Basin's Alpine High.
Kayne Anderson shareholders approved the deal Nov. 6. Apache serves as Altus Midstream's sponsor and holds about 79% of the company. Altus Midstream has options to buy equity stakes in five Permian Basin pipeline projects, along with plans to develop crude and water gathering assets in the Alpine High.
Altus Midstream entered into a credit agreement for an $800 million unsecured revolving credit facility, with a term of five years. The facility has an initial capacity of $450 million and may be upsized to $1.5 billion.
Besides the Alpine High, Apache also operates in the Permian's Midland and Central Basin Platform/Northwest Shelf basins, western Oklahoma, the Texas Panhandle and the Eagle Ford Shale in the Midcontinent and Gulf Coast region.