Equity offerings have been plentiful as the midstream moved to reduce debt and replenish company coffers. Enterprise Products Partners LP’s operating subsidiary, Enterprise Products Operating LLC, priced a public offering of $2.25 billion in senior unsecured notes. Net proceeds from that offering will go toward debt repayment and general company purposes, Enterprise said in a public statement. The notes are comprised of $1 billion due March 15, 2044, and $1.25 billion due March 15, 2023.
Eagle Rock Energy Partners LP made its own move to pay down debt with its public offering of 9 million common units. The partnership is giving underwriters the chance to purchase 1.35 million additional units.
DCP Midstream Partners and Williams Partners LP made equity issuances as well. DCP said in a public statement that it intends to use its sale of 11 million common units to buy additional units and repay debt. It will also put proceeds toward general partnership purposes. Williams Partners said it plans to use proceeds from its public offering to repay amounts outstanding under its partnership’s credit facility.
Meanwhile, Royal Dutch Shell plc snapped up part of Repsol SA’s liquefied natural gas portfolio in Peru and Trinidad and Tobago for $4.4 billion.
Closer to home, Regency Energy Partners acquired Southern Union Gathering Co. LLC from Southern Union Co. for $1.5 billion. Regency said in a release that the deal would help expand its presence in one of North America’s most productive basins.
“This acquisition represents a significant growth opportunity for Regency and is very strategic to our plans for expansion in the Permian Basin,” Regency Chief Executive Mike Bradley said in a public statement.
“The integration of (these) assets with our existing operations will position Regency with a broad Permian Basin gathering and processing footprint. The combined system is expected to provide significant synergies, increase efficiencies on our current system, improve the flexibility of our gathering and processing operations and enhance services for our customers.”
The transaction included a 5,600-mile gathering system, as well as 500 million cubic feet (MMcf) per day of processing and treating facilities in West Texas and New Mexico. Southern Union Gathering is currently finishing construction of the 200- MMcf-per-day Red Bluff processing plant, which is expected to be in service in the second quarter. Another 200-Mcf-perday cryogenic processing facility is expected to be in service next year
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