By July 24, 2015 Read More →

Enterprise Products Partners refocuses on Permian, Eagle Ford

Enterprise Products Partners sells Gulf offshore business for $1.5 billion to Genesis Energy

Enterprise Products Partners L.P. (NYSE:EPD) announced Friday that it has closed on the sale of its offshore Gulf of Mexico pipelines and services business to Genesis Energy L.P. and plans to expand operations in Texas shale plays.

Enterprise Products Partners

Michael A. Creel, Enterprise CEO and general partner.

The sale to Genesis netted Enterprise Products Partners approximately $1.5 billion in cash.

Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Assets include 49,000 miles of onshore pipelines; 225 million barrels of storage capacity for NGLs, crude oil, refined products and petrochemicals; and 14 billion cubic feet of natural gas storage capacity.

Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis’ operations include onshore and offshore pipeline transportation, refinery services, marine transportation and supply and logistics. Genesis’ operations are primarily located in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida, Wyoming and the Gulf of Mexico.

“The proceeds from this sale significantly enhance our financial flexibility,” said Michael A. Creel, Enterprise CEO and general partner.

“Including the proceeds we received today, our current liquidity, consisting of unrestricted cash and available borrowing capacity under our credit facilities, is over $6 billion.”

Creel says the liquidity gives Enterprise Products Partners flexibility in funding growth capital projects, including attractive growth projects in the Eagle Ford and Permian regions, while eliminating the need to raise equity capital for the remainder of 2015 based on current expectations.

Enterprise Products Partners services include natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and import and export terminals; crude oil and refined products transportation, storage and terminals; petrochemical transportation and services; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems.

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