Enterprise Announces Acquisition of Eagle Ford Midstream Assets
June 01 2015 - 8:49AM
Business Wire
Enterprise Products Partners L.P. (NYSE:EPD) today announced it
has executed definitive agreements to purchase all of the member
interests in EFS Midstream LLC (“EFS Midstream”) from affiliates of
Pioneer Natural Resources Company (“Pioneer”) and Reliance
Industries Limited (“Reliance”) for $2.15 billion. The purchase
price will be paid in two installments with the first installment
of $1.15 billion paid at closing and the final installment of $1.0
billion paid no later than the first anniversary of the closing
date.
EFS Midstream provides gas gathering, treating, compression and
condensate processing services in the Eagle Ford Shale. The EFS
Midstream system includes approximately 460 miles of natural gas
gathering pipelines, 10 central gathering plants, 780 million cubic
feet per day of natural gas treating capacity and 119 thousand
barrels per day of condensate stabilization capacity. Under the
terms of the agreements, the Pioneer and Reliance joint development
will dedicate its Eagle Ford Shale acreage to Enterprise under a
20-year, fixed-fee gathering agreement that includes a minimum
volume requirement for the first seven years. Pioneer and Reliance
will also dedicate their Eagle Ford Shale acreage under related
20-year fee-based agreements with Enterprise for natural gas
processing, natural gas liquids transportation and fractionation,
and for natural gas, processed condensate and crude oil
transportation services.
“We are pleased to announce the acquisition of EFS Midstream,”
said Michael A. Creel, chief executive officer of Enterprise’s
general partner. “This purchase and the associated long-term,
fee-based agreements expand our relationship with Pioneer and
Reliance and broaden the midstream services that we provide to
them. This ‘bolt on’ acquisition extends our integrated system
deeper into the NGL and condensate rich areas of the Eagle Ford,
which will provide us with the ability to offer services to
additional producers and increase volumes on our system,” continued
Creel.
“The minimum volume commitments support annual revenue growth
and cash flow assurance. We expect the transaction to be
immediately accretive to distributable cash flow. Attracting
volumes from additional producers and incremental cash flows earned
by our downstream system, would further improve our distributable
cash flow accretion,” stated Creel.
Completion of this transaction is subject to customary
regulatory approvals and closing conditions. The transaction is
expected to close in the third quarter of 2015.
Enterprise Products Partners L.P. is one of the largest publicly
traded partnerships and a leading North American provider of
midstream energy services to producers and consumers of natural
gas, NGLs, crude oil, refined products and petrochemicals. Our
services include: natural gas gathering, treating, processing,
transportation and storage; NGL transportation, fractionation,
storage and import and export terminals; crude oil and refined
products transportation, storage and terminals; offshore production
platforms; petrochemical transportation and services; and a marine
transportation business that operates primarily on the United
States inland and Intracoastal Waterway systems and in the Gulf of
Mexico. The partnership’s assets include approximately 51,000 miles
of onshore and offshore pipelines; 225 million barrels of storage
capacity for NGLs, crude oil, refined products and petrochemicals;
and 14 billion cubic feet of natural gas storage capacity.
This press release includes “forward-looking statements” as
defined by the Securities and Exchange Commission. All statements,
other than statements of historical fact, included herein that
address activities, events, developments or transactions that
Enterprise and its general partner expect, believe or anticipate
will or may occur in the future are forward-looking statements.
These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially
from expectations, including required approvals by regulatory
agencies, the possibility that the anticipated benefits from such
activities, events, developments or transactions cannot be fully
realized, the possibility that costs or difficulties related
thereto will be greater than expected, the impact of competition,
and other risk factors included in Enterprise’s reports filed with
the Securities and Exchange Commission. Readers are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of their dates. Except as required by law, Enterprise
does not intend to update or revise its forward-looking statements,
whether as a result of new information, future events or
otherwise.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150601005887/en/
Enterprise Products Partners L.P.Randy Burkhalter,
713-381-6812Investor RelationsorRick Rainey, 713-381-3635Media
Relations
Enterprise Products Part... (NYSE:EPD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Enterprise Products Part... (NYSE:EPD)
Historical Stock Chart
From Apr 2023 to Apr 2024