CorEnergy is to acquire ownership of a multi-million dollar pipeline central to natural gas in St Louis.
The MoGas pipeline, worth $125million, is 263 miles long and maintains key connections on three natural gas transmission pipelines.
US-based Cor-Energy intends to finance the takeover cost with borrowing from its credit facility and proceeds of common stock.
Chief executive David Schulte said: “We are pleased to add an interstate pipeline to our diversified portfolio of infrastructure assets used by utilities, storage terminal operators, and natural gas producers.
“Our board of directors has confirmed its intent to increase the dividend from $0.130 to $0.135 for the quarter ended March 31, 2015 (or $0.54 cents per share annualised) based upon management’s expectation that the increase is sustainable.”
The pipeline’s customers include Laclede Gas Company and Omega Pipeline.
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