EPP acquires Eagle Ford midstream assets

Enterprise Products Partners LP (EPP), Houston, has executed agreements to purchase all of the member interests in EFS Midstream LLC from affiliates of Pioneer Natural Resources Co., Irving, Tex., and Reliance Industries Ltd., Mumbai, for $2.15 billion. The companies announced last year their desire to divest EFS Midstream (OGJ Online, Nov. 4, 2014).

Payment will take place in two installments, the company said, the first amount of $1.15 billion being paid at closing and the final payment of $1 billion being paid by the first anniversary of the closing.

The company said completion of the transaction is subject to customary regulatory approvals and closing conditions. Enterprise expects the closing in third-quarter 2015.

Under the agreement’s terms, the Pioneer and Reliance joint development will dedicate its Eagle Ford shale acreage to EPP under a 20-year, fixed-fee gathering agreement that includes a minimum volume requirement for the first 7 years. Pioneer and Reliance will also dedicate their Eagle Ford shale acreage under related 20-year fee-based agreements with EPP for gas processing, NGL transportation and fractionation, and for natural gas, processed condensate, and crude oil transportation services.

EFS Midstream provides gas gathering, treating, compression, and condensate processing in the Eagle Ford shale and includes about 460 miles of natural gas gathering pipelines, 10 central gathering plants, 780 MMcfd gas treating capacity, and 119,000 b/d of condensate stabilization capacity.

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