Enterprise Products Partners LP (NYSE: EPD) said March 15 it will acquire natural gas gathering pipelines serving the Haynesville, Bossier, Cotton Valley and Travis Peak formations for $189 million as part of a bankruptcy auction.
An affiliate of the Houston-based company executed a definitive agreement to acquire the midstream business and assets of Azure Midstream Partners LP and its operating subsidiaries in East Texas and Northern Louisiana as a result of Azure's bankruptcy auction proceedings.
The acquisition includes more than 960 miles of natural gas gathering pipelines, three natural gas processing facilities with an aggregate capacity of about 210 million cubic feet per day and two 10,000 barrel per day NGL pipelines. The assets are located in Panola, Harrison, Angelina, Shelby, San Augustine, Sabine, Nacogdoches and Rusk counties, Texas, and DeSoto and Caddo parishes, La.
"These assets are very complementary to our East Texas NGL, Texas Intrastate natural gas pipeline and our Haynesville gathering and Acadian natural gas pipeline systems," William Ordemann, executive vice president of Enterprise’s general partner, said in a statement.
Ordemann expects the transaction to be immediately accretive to the company's distributable cash flow per unit.
The U.S. Bankruptcy Court for the Southern District of Texas entered an order approving the sale by Azure to Enterprise’s affiliate on March 15.
Enterprise expects to close the transaction early April, subject to customary regulatory approval and closing conditions. Andrews Kurth Kenyon LLP was the company's legal adviser for its acquisition.