Offshore staff
HOUSTON -Enterprise Products Partners has agreed to sell its offshore Gulf of Mexico pipelines and services business, which primarily consists of its Offshore Pipelines & Services business segment, to Genesis Energy for approximately $1.5 billion in cash. The transaction is expected to close during 3Q 2015.
Enterprise’s offshore assets include its ownership interest in nine crude oil pipeline systems with more than 1,100 mi (1,770 km) of pipeline; nine natural gas pipeline systems totaling about 1,200 mi (1,931 km) of pipeline; and its ownership interest in six offshore hub platforms.
“In recent years, earnings from our offshore business represented only 3% of Enterprise’s gross operating margin and our offshore assets do not effectively integrate with our downstream crude oil and natural gas pipeline systems,” said Michael A. Creel, CEO for Enterprise’s general partner. “We plan to redeploy proceeds from this sale into attractive growth opportunities that would extend and expand our integrated midstream system and should generate higher risk-adjusted returns on capital, such as acquisitions and organic projects in the Eagle Ford and Permian shale plays. In addition to enhancing our overall financial flexibility, the proceeds from this sale will effectively provide funds to finance the first installment of our recent acquisition of EFS Midstream LLC in the Eagle Ford and, furthermore, eliminates our need for equity capital for the remainder of 2015 based on our current expectations.”
07/16/2015
