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Enterprise Products Partners (EPD) has completed its $950 million acquisition of Piñon Midstream, a company focused on sour-gas processing in southeastern New Mexico, EPD announced Oct. 28 in a press release.
Enterprise paid for the acquisition with cash. Piñon was formerly part of Black Bay Energy Capital’s portfolio. The Houston-based companies announced the deal in August.
Piñon’s acid gas injection (AGI) system is located in Lea County. It’s the largest facility in an area of growing oil and gas production and injects gas about 18,000 ft below the surface. The Environmental Protection Agency has permitted two gas wells at the site for a total of 20 MMcf/d of CO2 and hydrogen sulfide injection.
At the time of the purchase, Enterprise said it was considering a third well at the facility.
Piñon Midstream retained Piper Sandler & Co. as its financial adviser and Kirkland & Ellis LLP as its legal advisor, while Locke Lord LLP and Sidley Austin LLP served as legal advisers to Enterprise during the process.
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