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- Enterprise Products Partners to Acquire Piñon Midstream for $950 Million
Enterprise Products Partners to Acquire Piñon Midstream for $950 Million
Slice of Energy Team
August 23, 2024
Key Highlights:
Enterprise to acquire Piñon Midstream for $950 million in cash, expanding into the Delaware Basin.
Piñon’s assets include 50 miles of pipelines and advanced natural gas treating facilities.
Transaction expected to be completed in Q4 2024, subject to regulatory approval.
Significant growth potential with future expansions and increased treating capacity.
Source (Business Wire)
Notable Quotes:
“We believe the Piñon management team has developed the premier sour natural gas treating system in the Delaware Basin.”
“The Piñon team is thrilled to contribute our unique Delaware Basin gas treating system to Enterprise, a true leader in the midstream energy business.”
Our Take:
This acquisition represents a strategic move for Enterprise Products Partners, significantly enhancing its presence in the Delaware Basin, a region with substantial untapped potential. By acquiring Piñon Midstream, Enterprise is not only gaining critical infrastructure but also positioning itself as a key player in the region's natural gas processing market. The ability to treat sour natural gas and sequester carbon dioxide adds a crucial layer of environmental responsibility, aligning with broader industry trends towards sustainability. This deal is poised to deliver significant value to Enterprise's stakeholders, both operationally and financially.