Enterprise Acquires Joint Venture Interests From Western Midstream
February 21 2024 - 4:05PM
Business Wire
Enterprise Products Partners L.P. (NYSE: EPD) today announced
that certain of its affiliates have acquired interests in
Whitethorn Pipeline Company LLC (“Whitethorn”) and Enterprise EF78
LLC (“EF78”) from affiliates of Western Midstream Partners, LP
(“Western”) in a series of debt-free transactions for $375 million
in total cash consideration.
Enterprise completed the acquisition of Western’s 20 percent
equity interest in Whitethorn, which owns the 620,000 barrel per
day Midland-to-Sealy portion of the Midland-to-ECHO 1 crude oil
pipeline. Enterprise now owns 100 percent of Whitethorn.
Enterprise also completed the acquisition of Western’s 25
percent equity interest in EF78, which owns natural gas liquids
(“NGL”) fractionators 7 and 8 located in Mont Belvieu, Texas. These
fractionators have an aggregate capacity of 170,000 barrels per
day. Enterprise now owns 100 percent of EF78.
“We are pleased to complete these transactions to consolidate
ownership in these midstream assets,” said A. J. “Jim” Teague,
co-chief executive officer of Enterprise’s general partner. “The
pipeline asset serves the prolific Permian Basin, and the
fractionation assets are integral to our NGL system. These
transactions are immediately accretive to Enterprise’s
distributable cash flow per unit.”
The Whitethorn and EF78 transactions were completed and funded
on February 16, 2024 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/20240221257200/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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