Enterprise and American Midstream to Optimize Gulf Coast Assets
August 23 2018 - 7:30AM
Business Wire
Enterprise Products Partners L.P. (NYSE: EPD) and American
Midstream Partners, LP (NYSE: AMID) today announced they have
entered into an agreement under which American Midstream may elect
to purchase a 25 percent interest in Enterprise’s Pascagoula
natural gas processing plant. The purchase option is subject to
certain conditions, including American Midstream completing
modifications to certain facilities on its High Point pipeline
system that will provide incremental natural gas volumes with
access to the Pascagoula plant.
American Midstream’s High Point pipeline system currently
delivers offshore natural gas production to the Enterprise-operated
Toca Gas Plant in St. Bernard Parish, Louisiana for processing
services. As the result of the pending modifications to the High
Point facilities, the Toca plant owners have voted to discontinue
operations. Enterprise, along with other Toca plant owners, expect
to realize significant operating expense savings from idling the
Toca facility and utilizing existing processing capacity at the
more efficient Pascagoula plant. Customers of the Toca plant will
have the option to enter into similar processing arrangements with
the Pascagoula facility, which should provide customers with higher
netbacks in the form of improved NGL recoveries and reduced energy
costs.
“We are pleased to work with American Midstream to find a
creative ‘win/win’ solution for our customers and partners in the
Toca plant,” said Brad Motal, senior vice president, Natural Gas
Assets and Marketing of Enterprise’s general partner.
“This agreement further illustrates how strategically positioned
midstream companies can find an innovative approach to create a
stronger and more reliable processing option for our customers. We
appreciate the opportunity to work with a high-quality company such
as Enterprise and partner in this solution,” stated Lynn Bourdon
III President and Chief Executive Officer.
Locke Lord LLP served as legal counsel for Enterprise and Sidley
Austin LLP served as legal counsel for American Midstream for this
transaction.
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 50,000 miles of pipelines; 260 million
barrels of storage capacity for NGLs, crude oil, refined products
and petrochemicals; and 14 billion cubic feet of natural gas
storage capacity.
American Midstream Partners, LP is a growth-oriented limited
partnership formed to provide critical midstream infrastructure
that links producers of natural gas, crude oil, NGLs, condensate
and specialty chemicals to end-use markets. American Midstream’s
assets are strategically located in some of the most prolific
offshore and onshore basins in the Permian, Eagle Ford, East Texas,
Bakken and Gulf Coast. American Midstream owns or has an ownership
interest in approximately 5,100 miles of interstate and intrastate
pipelines, as well as ownership in gas processing plants,
fractionation facilities, an offshore semisubmersible floating
production system with nameplate processing capacity of 90 MBbl/d
of crude oil and 220 MMcf/d of natural gas; and terminal sites with
approximately 4.3 MMBbls of 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 Products Partners L.P. and/or American Midstream
Partners LP expect, believe, or anticipate will or may occur in the
future, including anticipated benefits and other aspects of such
activities, events, developments or transactions, are
forward-looking statements. These forward-looking statements are
subject to risks and uncertainties that may cause actual results to
differ materially, 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 the reports filed with the
Securities and Exchange Commission by Enterprise Products Partners
L.P. and/or American Midstream Partners LP. 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 Products Partners L.P. and American Midstream Partners
LP do not intend to update or revise their forward-looking
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/20180823005149/en/
EnterpriseInvestor
RelationsRandy Burkhalter, 713-381-6812 or 866-230-0745orMedia
RelationsRick Rainey, 713-381-3635orAmerican Midstream Partners, LPDirector of
Investor RelationsMark Schuck, 346-241-
3497IR@americanmidstream.com
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