Enterprise to Acquire Interest in Panola NGL Pipeline From Western Midstream
February 21 2024 - 4:10PM
Business Wire
Enterprise Products Partners L.P. (NYSE: EPD) today announced
that its affiliate has entered into a definitive agreement to
acquire member interests in Panola Pipeline Company, LLC (“Panola”)
from an affiliate of Western Midstream Partners, LP (“Western”) in
a debt-free transaction for $25 million in cash consideration.
Enterprise executed a definitive agreement to acquire Western’s
15 percent equity interest in Panola. Panola owns a 253-mile
pipeline that transports mixed NGLs from natural gas processing
plants in East Texas, including Enterprise’s Bulldog plant, to
multiple destinations, including the partnership’s NGL
fractionation complex in Chambers County, Texas. Subject to the
rights of other Panola owners to participate in the sale of
Western’s interest, upon closing of this transaction, Enterprise
will own up to 70 percent of Panola.
The transaction is expected to close within 45 days of this
announcement, subject to terms under existing agreements. The
transaction is expected to be funded using a combination of cash on
hand and proceeds from the issuance of short-term notes under the
partnership’s commercial paper program.
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. Services
include: natural gas gathering, treating, processing,
transportation and storage; NGL transportation, fractionation,
storage and marine terminals; crude oil gathering, transportation,
storage and marine terminals; petrochemical and refined products
transportation, storage and marine terminals; and a marine
transportation business that operates on key U.S. inland and
intracoastal waterway systems. The partnership’s assets currently
include more than 50,000 miles of pipelines; over 300 million
barrels of storage capacity for NGLs, crude oil, petrochemicals and
refined products; and 14 billion cubic feet of natural gas storage
capacity. Please visit www.enterpriseproducts.com for more
information.
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 their respective
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/20240221600440/en/
Randy Burkhalter, Investor Relations, (713) 381-6812 or (866)
230-0745, rburkhalter@eprod.com Rick Rainey, Media Relations, (713)
381-3635, rrainey@eprod.com
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