Enterprise Completes Acquisition of Eagle Ford Midstream Assets
July 08 2015 - 9:08AM
Business Wire
Enterprise Products Partners L.P. (NYSE:EPD) today announced it
has closed on its purchase of the member interests in EFS Midstream
LLC (“EFS Midstream”) from affiliates of Pioneer Natural Resources
Company (“Pioneer”) and Reliance Holding USA Inc. (“Reliance”). The
purchase price of $2.15 billion is being paid in two installments.
The first installment of $1.15 billion was paid at closing today
with the final payment of $1.0 billion to be made no later than the
first anniversary of the closing date. The effective date of the
transaction is July 1, 2015.
EFS Midstream provides natural 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.
“We are pleased to close this acquisition,” said Michael A.
Creel, chief executive officer of Enterprise’s general partner.
“These assets ‘bolt on’ to our existing Eagle Ford crude oil,
natural gas and NGL infrastructure network. We are looking forward
to expanding our capabilities to provide Pioneer and Reliance as
well as new customers with market flow assurance and market access.
Supported by long-term, fixed-fee contracts and minimum volume
commitments, this transaction will be immediately accretive to
distributable cash flow per common unit and support future
distribution growth.”
Under the terms of the agreements, the Pioneer and Reliance
joint development dedicated 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 also dedicated 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.
After closing the transaction today, Enterprise had consolidated
liquidity of approximately $4.3 billion, which is comprised of
unrestricted cash on hand and available borrowing capacity under
its $3.5 billion multi-year revolving credit facility and $1.5
billion 364-day credit facility.
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20150708005755/en/
Enterprise Products Partners L.P.Randy Burkhalter, (713)
381-6812Investor RelationsorRick Rainey, (713) 381-3635Media
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