Enterprise Products Partners L.P. (EPD) today announced it has closed on the sale of its offshore Gulf of Mexico pipelines and services business to Genesis Energy L.P. (“Genesis”) for approximately $1.5 billion in cash.
“We are pleased to complete this transaction with Genesis,” said Michael A. Creel, chief executive officer of Enterprise’s general partner. “The proceeds from this sale significantly enhance our financial flexibility. 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. This liquidity gives us flexibility in funding our growth capital projects, including attractive growth projects in the Eagle Ford and Permian regions, while eliminating our need to raise equity capital for the remainder of 2015 based on current expectations.”
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. Our 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. The partnership’s assets include approximately 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. (GEL) announced today that it has completed the acquisition of Enterprise Products Partners L.P.’s offshore pipeline and services business from Enterprise and its affiliates previously announced on July 16, 2015. The purchase price was approximately $1.5 billion. The Enterprise offshore business serves some of the most active drilling and development regions in the United States, including deepwater production fields in the Gulf of Mexico offshore Texas, Louisiana, Mississippi and Alabama. The Enterprise offshore business assets will complement and substantially expand our existing offshore pipelines segment.
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.