Apache Dedicates Alpine High NGLs to Enterprise
May 24 2018 - 8:00AM
Business Wire
Enterprise Products Partners L.P. (NYSE: EPD) and Apache
Corporation (NYSE and NASDAQ: APA) today announced they have
executed a long-term agreement, with Apache committing 100 percent
of its Alpine High natural gas liquids (“NGLs”) to Enterprise.
Apache has 336,000 net acres in its Alpine High discovery in the
Delaware Basin. Enterprise has committed to accept a minimum of
205,000 barrels per day (“BPD”) of NGLs from Apache.
Enterprise is constructing the 658-mile Shin Oak pipeline from
Reeves County to Enterprise’s NGL fractionation and storage complex
in Mont Belvieu, Texas. The pipeline is expected to have an initial
capacity of 550,000 BPD and is scheduled to be completed in the
second quarter of 2019. Apache has an option for a 33 percent
equity stake in the Shin Oak pipeline, which is exercisable after
the in-service date.
“We are excited to announce our long-term agreements with Apache
to support their development of the prolific Alpine High region,”
said A.J. “Jim” Teague, chief executive officer of Enterprise’s
general partner. “This is another example of Enterprise
working with a premier producer in one of the most attractive
developments in the U.S. Shin Oak complements Enterprise’s
existing foundation of midstream assets and is part of our
comprehensive solution for providing flow assurance and market
choices from multiple basins, in addition to facilitating continued
production growth in an area, which is expected to double over the
next four years.”
“Alpine High is an enormous hydrocarbon resource that
encompasses rich gas, dry gas and oil-bearing horizons. This
agreement provides an efficient long-term outlet for the tremendous
volume of NGLs that Apache plans to produce from the rich gas
window of the play.
“Today’s announcement with Enterprise is another step in
supporting our full-field development program and ensuring access
to attractive markets for our products,” said Brian Feed, Apache’s
senior vice president, Midstream and Marketing.
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 gathering,
transportation, storage and terminals; petrochemical and refined
products transportation, storage and terminals; and a marine
transportation business that operates primarily on the United
States inland and Intracoastal Waterway systems. The
partnership’s assets include approximately 49,000 miles of
pipelines; 250 million barrels of storage capacity for NGLs, crude
oil, refined products and petrochemicals; and 14 billion cubic feet
of natural gas storage capacity.
Apache Corporation is an oil and gas exploration and production
company with operations in the United States, Egypt and the United
Kingdom. Apache posts announcements, updates, investor information
and all recent press releases on its website,
www.apachecorp.com.
This press release includes forward-looking
statements. Except for the historical information contained
herein, the matters discussed in this press release are
forward-looking statements that involve certain risks and
uncertainties, such as Enterprise’s and Apache’s expectations
regarding future results, capital expenditures, project
completions, liquidity and financial market conditions. These
risks and uncertainties include, among other things, insufficient
cash from operations, adverse market conditions, governmental
regulations and other factors discussed in Enterprise’s and
Apache’s filings with the U.S. Securities and Exchange
Commission. If any of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results or outcomes may vary materially from those
expected. Enterprise and Apache disclaim any intention or
obligation to update publicly or reverse such statements, whether
as a result of new information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20180524005629/en/
EnterpriseInvestor RelationsRandy Burkhalter, (713)
381-6812 or (866) 230-0745orMedia RelationsRick Rainey, (713)
381-3635orApacheMedia RelationsCastlen Kennedy, (713)
296-7189orInvestor RelationsGary Clark, (281) 302-2286
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