Enterprise to Sell Mississippi Natural Gas Storage Facilities

abarrelfullabarrelfull wrote on 18 Oct 2011 05:34
Tags: enterprise gas storage usa

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Enterprise Products Partners L.P. (NYSE: EPD) today announced that it has executed definitive agreements to sell the partnership's Mississippi natural gas storage facilities to Boardwalk HP Storage Company, LLC for $550 million. The Mississippi facilities have approximately 29 billion cubic feet of total storage capacity.

"We are pleased to execute this sales agreement," said Michael A. Creel, president and chief executive officer for Enterprise's general partner. "While we believe our Mississippi natural gas storage complex is one of the most attractive on the U.S. Gulf Coast, the complex is a standalone asset that does not integrate with our natural gas pipeline systems. Asset integration is one of Enterprise's core principles in creating incremental value for our partners. We believe the Mississippi facilities will be more valuable to Boardwalk HP Storage Company, whose affiliate, Boardwalk Pipeline Partners L.P., has complementary assets that may facilitate additional business opportunities and synergies."

"Enterprise currently has approximately $7 billion of energy infrastructure growth projects under development. We intend to reinvest the proceeds from this sale to partially fund the construction of these growth capital projects that will be integral to our midstream energy system. Including this transaction, we have sold approximately $1 billion of assets in 2011 that Enterprise acquired through mergers that were either standalone facilities or assets that were not strategic to our system. This redeployment of capital reduces our need to access the capital markets and we believe will lead to incremental growth in Enterprise's distributable cash flow and enhance the value of our partnership units," stated Creel.

This transaction is subject to customary regulatory approvals and is expected to close during the fourth quarter of 2011.

Wells Fargo Securities, LLC acted as exclusive financial advisor to Enterprise in this transaction.

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