Enterprise Acquires Acadian Natural Gas Pipeline System

abarrelfull wrote on 13 Jan 2014 11:50
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Sept. 25, 2000

Enterprise Products Partners L.P. (NYSE:EPD) today announced that its operating partnership has executed a definitive agreement to purchase Acadian Gas, LLC from Coral Energy, LLC, an affiliate of Shell Oil Company, for $226 million in cash, inclusive of working capital. The acquisition of Acadian integrates one of the most extensive and flexible natural gas pipeline systems in South Louisiana with Enterprise's Gulf Coast natural gas processing and natural gas liquid ("NGL") fractionation, pipeline and storage system.

Acadian's assets are comprised of the Acadian, Cypress and Evangeline natural gas pipeline systems, which together include over 1,000 miles of pipeline and have over one billion cubic feet ("Bcf") per day of capacity. The system includes a leased natural gas storage facility at Napoleonville, La. with 3.4 Bcf of capacity.

These systems link growing supplies of natural gas from onshore developments and, through receipts from offshore pipelines, continental shelf and deepwater production to local gas distribution companies, electric generation and industrial customers, including those in the Baton Rouge-New Orleans-Mississippi River corridor. In addition, the systems have interconnects with twelve interstate pipelines and four intrastate pipelines and a bi-directional interconnect with the largest U.S. natural gas marketplace at the Henry Hub.

"Acadian is a major and strategic investment for Enterprise," stated O.S. "Dub" Andras, president and chief executive officer of Enterprise. "Acadian is one of the best natural gas pipeline assets in Louisiana and has long-standing relationships with high quality customers. The system has excellent prospects for future growth and is well positioned to benefit from increased natural gas production and demand."

"This acquisition is strategic because it expands our platform of fee-based, midstream energy services to include natural gas transportation and storage. We believe there will be many growth and investment opportunities in natural gas and NGL infrastructure as producers respond to increasing demands for natural gas to fuel power generation. Acadian provides us a foundation from which to build and acquire additional natural gas pipeline assets. This segment is very complementary and will bring additional value to our NGL asset base," continued Andras.

"This transaction will be immediately accretive to earnings and cash flow," stated Andras.

Completion of this transaction is subject to certain conditions, including regulatory approvals. The purchase is expected to be completed in the fourth quarter of 2000.

• Enterprise Acquires Acadian Natural Gas Pipeline System

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