Energy Transfer Completes Acquisition of Enable Midstream
December 02 2021 - 4:42PM
Business Wire
Energy Transfer now has more than 114,000 miles
of pipeline across the U.S.
Combined operations expected to generate annual
cost efficiencies of more than $100 million
Accretive acquisition furthers Energy
Transfer’s deleveraging efforts
Dallas-based Energy Transfer LP (NYSE: ET) and Oklahoma
City-based Enable Midstream Partners, LP (NYSE: ENBL) today
announced the completion of their previously announced merger. The
terms of agreement were approved earlier this year by Enable’s two
largest unitholders, CenterPoint Energy, Inc. (CNP) and OGE Energy
Corp. (OGE), which together owned approximately 79% of Enable’s
outstanding common units. Effective with the opening of the market
on December 3, 2021, Enable’s common units will discontinue trading
on the NYSE as a result of the acquisition.
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Energy Transfer now owns and operates more than 114,000 miles of
pipelines and related assets in all of the major U.S. producing
regions and markets across 41 states, further solidifying its
leadership position in the midstream sector. The completion of the
transaction is immediately accretive to Energy Transfer and
furthers Energy Transfer’s deleveraging efforts. It also adds
significant fee-based cash flows from fixed-fee contracts.
Additionally, the combined operations of the two companies is
expected to generate annual run-rate cost and efficiency synergies
of more than $100 million, excluding potential financial and
commercial synergies.
The acquisition significantly strengthens Energy Transfer’s
midstream and gas transportation systems by adding Enable’s natural
gas gathering and processing assets in the Anadarko Basin in
Oklahoma, along with intrastate and interstate pipelines in
Oklahoma and surrounding states. It also boosts Energy Transfer’s
gas gathering and processing assets in the Arkoma basin across
Oklahoma and Arkansas, as well as in the Haynesville Shale in East
Texas and North Louisiana.
Enable common unitholders received 0.8595 ET common units for
each Enable common unit. Additionally, each outstanding Enable
Series A preferred unit was exchanged for 0.0265 Series G preferred
units of Energy Transfer. The transaction also included a $10
million cash payment for Enable’s general partner.
Energy Transfer LP (NYSE: ET) owns and operates one of
the largest and most diversified portfolios of energy assets in
North America, with a strategic footprint in all of the major U.S.
production basins. Energy Transfer is a publicly traded limited
partnership with core operations that include complementary natural
gas midstream, intrastate and interstate transportation and storage
assets; crude oil, natural gas liquids (NGL) and refined product
transportation and terminalling assets; and NGL fractionation.
Energy Transfer also owns Lake Charles LNG Company, as well as the
general partner interests, the incentive distribution rights and
28.5 million common units of Sunoco LP (NYSE: SUN), and the general
partner interests and 46.1 million common units of USA Compression
Partners, LP (NYSE: USAC).
Enable’s assets include approximately 14,000 miles of natural
gas, crude oil, condensate and produced water gathering pipelines,
approximately 2.6 Bcf/d of natural gas processing capacity,
approximately 7,800 miles of interstate pipelines (including
Southeast Supply Header, LLC of which Enable owns 50%),
approximately 2,200 miles of intrastate pipelines and seven natural
gas storage facilities comprising 84.5 billion cubic feet of
storage capacity.
Forward-Looking Statements
This release includes “forward-looking” statements.
Forward-looking statements are identified as any statement that
does not relate strictly to historical or current facts. Statements
using words such as “anticipate,” “believe,” “intend,” “project,”
“plan,” “expect,” “continue,” “estimate,” “goal,” “forecast,” “may”
or similar expressions help identify forward-looking statements.
Energy Transfer and Enable cannot give any assurance that
expectations and projections about future events will prove to be
correct. Forward-looking statements are subject to a variety of
risks, uncertainties and assumptions. These risks and uncertainties
include the risks that the benefits contemplated from the
transaction may not be realized. Additional risks include: the
ability of Energy Transfer to successfully integrate Enable’s
operations and employees and realize anticipated synergies and cost
savings, the potential impact of the consummation of the
transaction on relationships, including with employees, suppliers,
customers, competitors and credit rating agencies, the ability to
achieve revenue, DCF and EBITDA growth, and volatility in the price
of oil, natural gas, and natural gas liquids. Actual results and
outcomes may differ materially from those expressed in such
forward-looking statements. These and other risks and uncertainties
are discussed in more detail in filings made by Energy Transfer and
Enable with the SEC, which are available to the public. In addition
to the risks and uncertainties previously disclosed, the
partnerships have also been, or may in the future be, impacted by
new or heightened risks related to the COVID-19 pandemic, and we
cannot predict the length and ultimate impact of those risks. The
partnerships have also been, and may in the future be, impacted by
the winter storm in February 2021 and the resolution of related
contingencies, including credit losses, disputed purchases and
sales, litigation and/or potential legislative action. Energy
Transfer and Enable undertake no obligation to update publicly or
to revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
The information contained in this press release is available on
our website at www.energytransfer.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20211202005977/en/
Media Relations: Lauren Atchley or Vicki Granado,
214.840.5820 media@energytransfer.com
Investor Relations: Bill Baerg, Brent Ratliff, Lyndsay
Hannah, 214.981.0795
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