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Enterprise acquires joint venture interests from western midstream

Published by , Editorial Assistant
Tanks and Terminals,

Enterprise Products Partners L.P. has announced that certain of its affiliates have acquired interests in Whitethorn Pipeline Co. LLC and Enterprise EF78 LLC from affiliates of Western Midstream Partners, LP in a series of debt-free transactions for US$375 million in total cash consideration.

Enterprise completed the acquisition of Western’s 20% equity interest in Whitethorn, which owns the 620 000 bpd Midland-to-Sealy portion of the Midland-to-ECHO 1 crude oil pipeline. Enterprisehas taken ownership of 100% of Whitethorn.

Enterprise also completed the acquisition of Western’s 25% equity interest in EF78, which owns natural gas liquids (NGL) fractionators 7 and 8 located in Mont Belvieu, Texas, US. These fractionators have an aggregate capacity of 170 000 bpd. Enterprise has taken ownership of 100% of EF78.

“We are pleased to complete these transactions to consolidate ownership in these midstream assets,” said A. J. 'Jim' Teague, co-chief executive officer of Enterprise’s general partner. “The pipeline asset serves the prolific Permian Basin, and the fractionation assets are integral to our NGL system. These transactions are immediately accretive to Enterprise’s distributable cash flow per unit.”

The Whitethorn and EF78 transactions were completed and funded on 16 February 2024 using a combination of cash on hand and proceeds from the issuance of short-term notes under the partnership’s commercial paper program.

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. Services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and marine terminals; crude oil gathering, transportation, storage and marine terminals; petrochemical and refined products transportation, storage and marine terminals; and a marine transportation business that operates on key US inland and intracoastal waterway systems. The partnership’s assets currently include more than 50 000 miles of pipelines; over 300 million bbl of storage capacity for NGLs, crude oil, petrochemicals and refined products; and 14 billion ft3 of natural gas storage capacity.

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