Enterprise Products Partners L.P. announced that its affiliate has entered into a definitive agreement to acquire member interests in Panola Pipeline Company, LLC from an affiliate of Western Midstream Partners, LP in a debt-free transaction for $25 million in cash consideration.
Enterprise executed a definitive agreement to acquire Western’s 15 percent equity interest in Panola. Panola owns a 253-mile pipeline that transports mixed NGLs from natural gas processing plants in East Texas, including Enterprise’s Bulldog plant, to multiple destinations, including the partnership’s NGL fractionation complex in Chambers County, Texas. Subject to the rights of other Panola owners to participate in the sale of Western’s interest, upon closing of this transaction, Enterprise will own up to 70 percent of Panola.
The transaction is expected to close within 45 days of this announcement, subject to terms under existing agreements. The transaction is expected to be funded using a combination of cash on hand and proceeds from the issuance of short-term notes under the partnership’s commercial paper program.
