Enterprise Announces Acquisition of Eagle Ford Midstream Assets

July 2015, Vol.242, No. 7

HOUSTON – Enterprise Products Partners announced today it executed definitive agreements to purchase all member interests in Eagle Ford Shale gas-gathering company EFS Midstream from affiliates of Pioneer Natural Resources Company and Reliance Industries Limited for $2.15 billion.

The EFS Midstream system includes 460 miles of natural gas gathering pipelines, 10 central gathering plants, 780 MMcf/d of natural gas treating capacity and 119,000 bpd of condensate stabilization capacity. Under the terms of the agreements, the Pioneer and Reliance joint development will dedicate its Eagle Ford Shale acreage to Enterprise under a 20-year, fixed-fee gathering agreement that includes a minimum volume requirement for the first seven years.

Pioneer and Reliance will also dedicate their Eagle Ford Shale acreage under related 20-year fee-based agreements with Enterprise for natural gas processing, natural gas liquids transportation and fractionation, and for natural gas, processed condensate and crude oil transportation services.

“This purchase and the associated long-term, fee-based agreements expand our relationship with Pioneer and Reliance and broaden the midstream services that we provide to them,” said Michael A. Creel, chief executive officer of Enterprise’s general partner. “This ‘bolt on’ acquisition extends our integrated system deeper into the NGL and condensate rich areas of the Eagle Ford, which will provide us with the ability to offer services to additional producers and increase volumes on our system.”

The purchase price will be paid in two installments with the first installment of $1.15 billion paid at closing and the final installment of $1.0 billion paid no later than the first anniversary of the closing date. The transaction is expected to close in the third quarter of 2015.

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