Enterprise Products Partners to Acquire Piñon Midstream for $950 Million
A Major Deal in the Midstream Energy Sector
Enterprise Acquires Piñon Midstream to Expand its Delaware Basin Foothold
Enterprise Products Partners LP (EPD) and Piñon Midstream LLC have announced a definitive agreement for Enterprise to acquire Piñon Midstream for $950 million in cash. The acquisition will expand Enterprise's natural gas gathering and treating footprint in the Delaware Basin.
Piñon Midstream is a privately held company with operations in the Delaware Basin, one of the most prolific oil and gas basins in the United States. The company's assets include natural gas gathering, treating, and transportation systems. This acquisition will expand Enterprise's presence in the Delaware Basin, adding about 200 miles of natural gas gathering pipelines and 300 million cubic feet per day of cryogenic gas processing capacity.
The acquisition is expected to close in the fourth quarter of 2024, subject to customary closing conditions. Enterprise said the acquisition will be immediately accretive to its distributable cash flow per share.
Key Benefits of the Acquisition for Enterprise
- Expands Enterprise's natural gas gathering and treating footprint in the Delaware Basin, one of the most prolific oil and gas basins in the United States.
- Adds about 200 miles of natural gas gathering pipelines and 300 million cubic feet per day of cryogenic gas processing capacity.
- Expected to be immediately accretive to Enterprise's distributable cash flow per share.
About Piñon Midstream LLC
Piñon Midstream is a privately held company headquartered in Midland, Texas. The company provides a full suite of midstream services, including natural gas gathering, treating, processing, and transportation. Piñon operates in several of the most active oil and gas basins in the United States, including the Delaware Basin, Permian Basin, and Eagle Ford Shale.
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