American Midstream Announces Acquisition of Panther; Continuing to Build Gulf Super System

HOUSTON–(BUSINESS WIRE)–American
Midstream Partners, LP (NYSE:AMID) (“AMID” or “Partnership”)
announced today the acquisition of 100% of the assets in Panther Asset
Management, LLC (“Panther”) for a total consideration of approximately
$52 million. The consideration consisted of approximately $39 million
cash from borrowings under the Partnership’s revolving credit facility
and common units representing limited partner interests.

The underlying assets acquired are highly complementary with AMID’s core
Gulf of Mexico assets as a substantial portion of Panther’s cash flows
are generated by AMID joint ventures. Through the purchase, AMID will
acquire Panther’s 33.3% equity interests in Main Pass Oil Gathering
(“MPOG”), as well as Panther’s 40% equity interest in American Panther,
LLC (“AmPan”). As such, the Partnership will now own 100% of MPOG and
AmPan.

MPOG currently provides crude oil transportation services in the Main
Pass, Viosca Knoll and Mississippi Canyon areas with onshore Louisiana
delivery to either Delta or Cypress pipelines to the Empire Terminal.
MPOG has crude oil capacity of 160 MBbls/day and has approximately 98
miles of large and mid-diameter pipelines from four offshore platforms.
AmPan provides crude oil and natural gas transportation services from
the South Marsh Island area offshore to an onshore station near Henry
Hub in Vermillion Parish, LA for crude oil and the Henry Hub for natural
gas. In total, the AmPan system encompasses approximately 200 miles of
crude oil, natural gas, and salt water onshore and offshore Gulf of
Mexico pipeline.

Consolidating MPOG and AmPan into the Partnership’s Gulf of Mexico
portfolio continues the strategy of enhancing its gulf coast asset base,
providing its customers with strong interconnectivity that allow for
multiple product delivery points product delivery; as well as solidly
position AMID as a Gulf of Mexico crude oil pipeline operator.

The acquisition of Panther is an important part of the Partnership
capital redeployment strategy. Coupled with the recently announced
Viosca Knoll acquisition on June 2, 2017, AMID has effectively
redeployed $85 million of the anticipated proceeds from the sale of
Propane Marketing and Services business announced on July 24, 2017. The
acquisition of Panther is accretive to 2017 Adjusted EBITDA and
distributable cash flow and is expected to earn returns consistent with
a mid-single digit cash flow multiple.

“We are excited about further integrating this strategic asset as part
of our long-term Gulf Coast strategy. The acquisition of Panther is a
strong and tactical fit that will provide another step to creating the
premier gulf system,” stated Lynn Bourdon III, President and Chief
Executive Officer. “The Panther team has a strong history of being able
to execute in high valued projects and we look forward to working with
them as part of AMID.”

Panther Overview

Panther wholly owns three active operating companies (the “Panther
Companies”) that are engaged in various aspects of the oil and gas
midstream business. The Panther Companies own and/or operate/manage more
than 1,000 miles of oil and gas pipelines, primarily in Texas and
Louisiana offshore state and federal waters. Each of the Panther
Companies is a distinct entity with its own field of operations
determined by business plan, geographical, and regulatory considerations.

About American Midstream Partners, LP

American Midstream Partners, LP is a growth-oriented limited partnership
formed to provide critical midstream infrastructure that links producers
of natural gas, crude oil, NGLs, condensate and specialty chemicals to
end-use markets. American Midstream’s assets are strategically located
in some of the most prolific onshore and offshore basins in the Permian,
Eagle Ford, East Texas, Bakken and Gulf Coast. American Midstream owns
or has an ownership interest in approximately 4,000 miles of interstate
and intrastate pipelines, as well as ownership in gas processing plants,
fractionation facilities, an offshore semisubmersible floating
production system with nameplate processing capacity of 80 MBbl/d of
crude oil and 200 MMcf/d of natural gas; and terminal sites with
approximately 6.7 MMBbls of storage capacity. The Partnership owns the
third largest cylinder exchange business and one of the largest regional
retail propane providers.

For more information about American Midstream Partners, LP, visit www.americanmidstream.com.

Non-GAAP Financial Measures

This press release includes financial measures in accordance with U.S.
generally accepted accounting principles, or GAAP, as well as non-GAAP
financial measures, including “Adjusted EBITDA.”

We define distributable cash flow as Adjusted EBITDA, less cash paid for
interest expense, normalized maintenance capital expenditures, and
distributions related to the Series A, Series C and Series D convertible
preferred units. The GAAP financial measure most comparable to
distributable cash flow is Net income (loss) attributable to the
Partnership.

Forward Looking Statements

This press release includes forward-looking statements. These statements
relate to, among other things, projections of operational volumetrics
and improvements, growth projects, cash flows and capital expenditures.
We have used the words “anticipate,” “believe,” “could,” “estimate,”
“expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,”
“will,” “potential,” and similar terms and phrases to identify
forward-looking statements in this press release. Although we believe
the assumptions upon which these forward-looking statements are based
are reasonable, any of these assumptions could prove to be inaccurate
and the forward-looking statements based on these assumptions could be
incorrect.

Actual results and trends in the future may differ materially from those
suggested or implied by the forward-looking statements depending on a
variety of factors, which are described in greater detail in our filings
with the SEC. Please see “Risk Factors” and other disclosures included
in our Annual Report on Form 10-K for the year ended December 31, 2016
filed on March 28, 2017 and our other filings with the SEC. All future
written and oral forward-looking statements attributable to us or
persons acting on our behalf are expressly qualified in their entirety
by the previous statements. The forward-looking statements herein speak
as of the date of this press release. We undertake no obligation to
update any information contained herein or to publicly release the
results of any revisions to any forward-looking statements that may be
made to reflect events or circumstances that occur, or that we become
aware of, after the date of this press release.

Contacts

American Midstream Partners, LP
Mark Buscovich, 713-815-3967
Manager
of Finance
[email protected]