Enterprise Products Partners LP, one of the largest pipeline
companies in the U.S., has agreed to sell its offshore Gulf of
Mexico pipelines and services business to Genesis Energy LP for
about $1.5 billion in cash.
The assets include Enterprise's interest in nine crude oil and
nine natural gas pipeline systems, as well as six offshore hub
platforms.
Enterprise said the business doesn't fit with its downstream
crude oil or natural gas pipelines. The company said it could use
the proceeds from the sale to expand its midstream system, such as
acquisitions in the Eagle Ford and Permian shales.
For its part, Genesis expects the deal to be immediately
accretive and to improve its credit metrics over time.
"These offshore assets will substantially enlarge our portfolio
of strategic infrastructure in the Gulf of Mexico, which is one of
the most prolific producing regions in the United States," said
Genesis Chief Executive Grant Sims in a news release.
The deal is expected to close this year.
In June, Enterprise Products agreed to buy Texas oil and gas
pipelines and processing plants from Pioneer Natural Resources Co.
and Reliance Industries Ltd. for $2.15 billion.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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