Enterprise to Acquire ChevronTexaco's Ownership in NGL Fractionator

abarrelfullabarrelfull wrote on 13 Jan 2014 13:03

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Apr 23, 2002

Enterprise Products Partners L.P. (NYSE:EPD) announced that its operating partnership has executed an agreement to acquire a 12.5 percent ownership interest in a natural gas liquids fractionator from an affiliate of ChevronTexaco. The transaction is expected to close during the second quarter of 2002. Financial details of the agreement were not disclosed.

The fractionator is located in Enterprise's complex in Mont Belvieu, Texas. It has the capacity to fractionate, or separate, 210,000 barrels per day of mixed natural gas liquids into ethane, propane, normal butane, isobutane and natural gasoline. Enterprise currently owns 62.5 percent interest in this facility and serves as the operator.

Upon completion of the purchase, the other joint owners of the plant, affiliates of Duke Energy Field Services and Burlington Resources, have the option to acquire their pro rata share of the 12.5 percent ownership interest from Enterprise. If the joint owners fully exercise their option to acquire their share of the interest, Enterprise's ownership would increase to approximately 71.4 percent. Should the joint owners decline to exercise their options, Enterprise would own 75 percent of the plant.

The divestiture was mandated in a consent order by the U.S. Federal Trade Commission as a condition of approving the merger between Chevron and Texaco. The sale is subject to FTC approval.

"NGL fractionation is one of our core, fee-based businesses. Over the last 20 years, Enterprise has developed, constructed, expanded and operated this facility at Mont Belvieu. We are pleased to have the opportunity to increase our ownership interest in this plant. This small investment should be accretive to our partners in terms of distributable cash flow by approximately $0.03 per unit on a fully diluted basis," said O.S. "Dub" Andras, president and chief executive officer of Enterprise.

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