Crosstex Investors Cash in on Merger, Selling 18M Units for $550M
Crosstex Energy recently got hitched with the midstream operation of Devon Energy and the new couple gave birth, or rather transformed itself, into EnLink Midstream (see Time to Congratulate Devon & Crosstex on the Birth of EnLink).The new EnLink has a growing presence in both the Utica and Marcellus Shale. They are a “player” in our space, so we keep a close eye on them.
Last Friday the newly combined and renamed EnLink announced owners of 18 million shares of stock in EnLink (called units) have put their shares up for sale with an eye to raising $550 million. However, that money will not flow to the coffers of EnLink. It will go to the owners of the units–presumably top management and/or investors in the old Crosstex. The action does make us wonder: Is this a prelude to some of top management leaving EnLink, or just big money investors cashing in to realize a big ROI? We don’t know. Here’s the announcement from Friday: