Enterprise Products Partners (EPD) will acquire Eagle Ford Shale (EFS) Midstream for a total price of $2.15 billion.
The deal announced this week includes an agreement with Pioneer Natural Resources and Reliance Industries who each own shares in EFS and is expected to be closed in the third quarter this year. The purchase price will be split into two installments, with $1.15 billion to be paid at the transaction closure. The balance of $1 billion will be paid within 12 months of the closing date.
“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.”
EFS Midstream designs, constructs, owns and operates facilities that provide gas gathering, treating, condensate stabilization, and transportation services for operations in the Eagle Ford Shale and offers nearly 460 miles of natural gas gathering pipelines and ten central gathering plants. The firm maintains 119 thousand barrels of condensate stabilization capacity per day and can treat 780 million ft3 of natural gas daily.
Read more at enterpriseproducts.com