A deal by Enterprise Products Partners LP to snap up a Permian Basin sour gas midstream operator will accelerate the Houston giant’s strategy in the nation’s largest producing region by “at least three or four years,” a top executive said Wednesday.
Enterprise has agreed to pay $950 million to acquire Piñon Midstream LLC, a portfolio company of private equity Black Bay Energy Capital. The transaction is set to expand Enterprise’s services in New Mexico and Texas.
Enterprise’s Jim Teague, co-CEO of the general partner, said the Piñon assets “accelerate our entry into this region by at least three or four years. These assets are highly complementary to our midstream energy system and provide us an excellent entry point into the eastern flank of the Delaware Basin for us to expand our natural gas processing footprint.”
Read More: Enterprise Snapping Up Piñon Midstream to Build Permian Natural Gas Gathering