Enterprise Products Partners to acquire interest in Panola NGL pipeline

An affiliate of Enterprise Products Partners agreed to acquire member interests in Panola Pipeline Co. from an affiliate of Western Midstream Partners in a debt-free transaction for $25 million in cash consideration.

Under the agreement, Enterprise will 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, Enterprise says it will own up to 70 percent of Panola.

The transaction was expected to close within 45 days of the Feb. 21 announcement.

In addition, certain affiliates of Enterprise have acquired interests in Whitethorn Pipeline Co. and Enterprise EF78 from affiliates of Western Midstream Partners 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 (bpd) 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 NGL fractionators 7 and 8 located in Mont Belvieu, Texas. These fractionators have an aggregate capacity of 170,000 bpd. Enterprise now owns 100 percent of EF78.

“We are pleased to complete these transactions to consolidate ownership in these midstream assets,” says A.J. “Jim” Teague, co-CEO of Enterprise’s general partner, about the Whitehorn and EF78 deals. “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.”

Enterprise Products Partners is one of the largest publicly traded partnerships and a North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals.

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