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Shell Midstream Partners, L.P. Announces Acquisition of Additional Interests in Onshore Assets

Houston, May 17, 2016 (GLOBE NEWSWIRE via COMTEX) --

Shell Midstream Partners, L.P. SHLX, -0.44% has agreed to acquire additional equity interests in Zydeco Pipeline Company LLC (Zydeco), Bengal Pipeline Company LLC (Bengal), and Colonial Pipeline Company (Colonial) from Shell Pipeline Company LP, a wholly owned subsidiary of Royal Dutch Shell plc, for $700 million. The acquisition will increase Shell Midstream Partners' interests in Zydeco to 92.5%, Bengal to 50.0%, and Colonial to 6.0%.

"We chose to acquire additional interests in these high-quality assets given their strong operational performance and strategic fit in our portfolio," said John Hollowell, chief executive officer of Shell Midstream Partners. He added, "These assets are well known to our unitholders and help position us to deliver our strategy and distribution growth from the assets' predictable and stable cash flows."

The acquisition price reflects an approximate 8.8 times multiple of the contributed interests' forecasted next twelve months adjusted earnings before interest, taxes, depreciation and amortization. The acquisition will be effective April 1, 2016 and is expected to be immediately accretive to unitholders. Shell Midstream Partners expects to fund the acquisition with a combination of proceeds from a capital markets transaction, borrowings under its revolving credit facilities and cash on hand. The acquisition is expected to close on or about May 23, 2016, subject to customary closing conditions.

The terms of the acquisition were approved by the conflicts committee of the board of directors of the general partner of Shell Midstream Partners, which is composed entirely of independent directors. The conflicts committee was advised by Evercore Group, L.L.C. as to financial matters and Andrews Kurth LLP as to legal matters.

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About Shell Midstream Partners, L.P.

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