Alberta Investment Management Corporation (AIMCo) has gained a controlling stake in Howard Energy Partners (HEP) with the acquisition of Astatine Investment Partners’ interest in the US pipeline operator.

AIMCo, which acquired an initial 28% stake in HEP in early 2017 from EnLink Midstream Partners for up to $500m (€505m), said it now holds 87% of the company with HEP’s management and other minority investors maintaining their 13% share. The terms of the transaction were undisclosed.

In December 2013, funds managed by Alinda Capital Partners, now Astatine Investment Partners, acquired its 59% stake in HEP.

Founded in June 2011, HEP is a diversified energy platform business with strategically located midstream and downstream assets in the US. The company’s operations are mainly focused in the Eagle Ford Shale region of South Texas and the Marcellus Shale region of Northeast Pennsylvania.

Texas-based HEP currently owns and operates more than 600 miles of natural gas gathering pipelines, a 200,000cfd natural gas processing plant, a 10,000b/d condensate stabiliser and a 220,000 barrel liquids storage terminal.

Ben Hawkins, executive managing director at AIMCo and head of infrastructure, renewables and sustainable investing, said: “We are excited to make further investment in Howard Energy and to grow our global portfolio of high-quality energy infrastructure assets on behalf of our clients.

“AIMCo’s significant ownership ensures continuity of a very successful, long-term partnership with Howard Energy.”

Mike Howard, HEP chairman and CEO, said: “As one of the premier capital providers in the industry, AIMCo has been a long-time and trusted partner of HEP. They have supported our vision of growth and value creation while at the same time supporting our commitment of delivering positive energy in new and innovative ways.

“I am excited that we are significantly expanding our partnership in North America, and I believe that together we will be able to further scale our platform of assets for many years into the future.”

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