American Midstream Announces Cayenne Pipeline Joint Venture

HOUSTON–(BUSINESS WIRE)–American
Midstream Partners, LP (NYSE:AMID) (“AMID”) announced today it has
entered into a joint venture agreement between AMID and Targa Midstream
Services LLC (“Targa”) creating Cayenne Pipeline, LLC (“Cayenne”).
Cayenne will transport Y-grade NGLs from the Targa-operated Venice
Energy Services Company, LLC gas processing plant (“Venice”) to
Enterprise Products’ pipeline at Toca, Louisiana, for delivery to
Enterprise Products’ Norco Fractionator.

As part of the Cayenne joint venture, AMID is contributing an
underutilized natural gas pipeline that will convert into high value,
natural gas liquids service. The project is supported by a 15-year
dedication for all NGL production from Targa’s 750 MMcf/d Venice plant
with inlet from six offshore pipelines in the Gulf of Mexico, including
the prolific deep-water Mississippi Canyon area. The pipeline will have
initial capacity of over 40,000 barrels per day with the ability to
throughput more than 50,000 barrels per day. AMID and Targa will each
have 50% economic interests and 50% voting rights, respectively, with
Targa serving as the operator of the venture. The costs of conversion
and associated construction will be shared equally by AMID and Targa.

The project has received necessary change of service permits and is
expected to be fully operational by year-end 2017. The joint venture is
expected to be brought into service at a highly attractive cash flow
multiple that is consistent with AMID’s strategy of allocating capital
and increasing scale to accretive projects without the need for external
capital.

“Formation of Cayenne is another step in executing our strategy of
linking off-shore gas supply to on-shore demand. The project will
benefit the offshore producer community while driving a significant
increase in the value of a pipeline by altering its service. We are also
pleased to have a world class operating partner in Targa involved with
this project,” stated Lynn Bourdon III, President and Chief Executive
Officer. “The joint venture demonstrates our ability to react quickly to
market demand by providing effective solutions to our customers with
strong return for our unit holders.”

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 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 semi-submersible floating
production system with nameplate processing capacity of 100 MBbl/d of
crude oil and 240 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.

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]