Enterprise Acquires Azure Natural Gas Gathering System
16 March 2017 - 4:36AM
Business Wire
Enterprise Products Partners L.P. (NYSE: EPD) today announced
that one of its affiliates has executed a definitive agreement to
acquire the midstream business and assets of Azure Midstream
Partners, L.P. and its operating subsidiaries (“Azure”) in East
Texas and North Louisiana. The agreement was the result of Azure’s
bankruptcy auction proceedings, which Enterprise won with a bid
price of $189 million. The United States Bankruptcy Court for the
Southern District of Texas entered an order approving the sale by
Azure to Enterprise’s affiliate on March 15, 2017.
The assets include over 960 miles of natural gas gathering
pipelines, three natural gas processing facilities with an
aggregate capacity of approximately 210 million cubic feet per day
and two 10,000 barrel per day NGL pipelines. These assets are
located in Panola, Harrison, Angelina, Shelby, San Augustine,
Sabine, Nacogdoches and Rusk counties, Texas and DeSoto and Caddo
parishes, Louisiana. The system serves production from the
Haynesville shale, Bossier, Cotton Valley and Travis Peak
formations.
“We are pleased to acquire these assets,” said William Ordemann,
executive vice president of Enterprise’s general partner. “These
assets are very complementary to our East Texas NGL, Texas
Intrastate natural gas pipeline, and our Haynesville gathering and
Acadian natural gas pipeline systems. This transaction is expected
to be immediately accretive to our distributable cash flow per
unit.”
This transaction is subject to customary regulatory approval and
closing conditions. Enterprise expects to close the transaction as
soon as practicable after such regulatory approvals and closing
conditions have been satisfied, which is expected to occur as early
as April, 2017.
Andrews Kurth Kenyon LLP acted as legal advisor to Enterprise in
connection with the 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 49,300 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.
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 its forward-looking statements,
whether as a result of new information, future events or
otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20170315006199/en/
Enterprise Products Partners L.P.Randy Burkhalter, (713)
381-6812 or (866) 230-0745Investor RelationsorRick Rainey, (713)
381-3635Media Relations
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