M-U Pipeline Co. Eureka Midstream Expands Line of Credit to $400M

Eureka Midstream, which was once called Eureka Hunter (a subsidiary of Magnum Hunter Resources) has popped back up on the radar screen. Eureka, which operates exclusively in the Marcellus/Utica with ~200 miles of local gathering pipelines, announced yesterday it has expanded its line of credit from $225 million to $400 million, with an “accordion” option to further expand it to $500 million. Last time we wrote about Eureka (in December 2015), parent Magnum Hunter was looking to sell it off (see Magnum Hunter De-Listed from NYSE; Still Shopping Eureka Hunter). A lot has happened since that time. Magnum Hunter filed for and later emerged from bankruptcy, minus its colorful CEO Gary Evans (see Magnum Hunter Emerges from Bankruptcy with CEO Gary Evans Gone). During the bankruptcy process, Eureka was not sold but instead spun off into its own standalone company. Magnum Hunter, later renaming itself to Blue Ridge Mountain Resources, has remained a major customer for Eureka. Eureka says it will use the $400-$500M line of credit for “capital expenditures, financing permitted acquisitions, funding working capital, and general corporate purposes.” Here’s an update on Eureka, which has successfully charted a course away from former parent Magnum Hunter…

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