KC-based CorEnergy to buy off-shore transport system for $245 million

Kansas City-based CorEnergy Infrastructure Trust Inc. has agreed to pay $245 million for a pipeline system that helps move oil and water from offshore fields in the shallow zones of the Gulf of Mexico onto land.

Its purchase of the Grand Isle Gathering System involves 153 miles of undersea pipeline that transports oil and water from six fields operated by the seller, Energy XXI USA Inc., and one field operated by ExxonMobil.

CorEnergy said it would pay for the deal by issuing 11.25 million shares of is own stock, selling $75 million of debt that is convertible to CorEnergy shares and by tapping its credit lines and available cash.

The Star

This story was originally published June 22, 2015 at 5:13 PM with the headline "KC-based CorEnergy to buy off-shore transport system for $245 million."