Enterprise Products Partners LP closed the $2.15 billion purchase of EFS Midstream LLC member interests from affiliates of Pioneer Natural Resources Co. (PXD) and Reliance Holding USA Inc., Enterprise said July 8.
Enterprise paid the first installment of $1.15 billion, and the final $1 billion payment is due on the first anniversary of the closing date. The transaction’s effective date is July 1.
EFS Midstream provides natural gas gathering, treating, compression and condensate processing services in the Eagle Ford Shale. The EFS Midstream system includes about 460 miles of natural gas gathering pipelines, 10 central gathering plants, 780 million cubic feet per day of natural gas treating capacity and 119 thousand barrels per day of condensate stabilization capacity.
A joint development dedicated Pioneer and Reliance’s Eagle Ford acreage to Enterprise under a 20-year, fixed fee gathering agreement with a minimum volume requirement for the first seven years. There were also related, 20-year fee-based agreements with Enterprise for natural gas processing, NGL transportation and fractionation, and for natural gas, processed condensate and crude oil transportation.
At closing, Enterprise had about $4.3 billion in consolidated liquidity comprised of unrestricted cash on hand and borrowings under the $3.5 billion, multiyear revolving credit facility and $1.5 billion, 364-day credit facility.
Houston-based Enterprise Products Partners LP is a domestic-focused midstream company.
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