Enterprise to Acquire Piñon Midstream
Piñon Midstream’s assets include approximately 50 miles of natural gas gathering and redelivery pipelines, five 3-stage compressor stations, 270 million cubic feet per day (“MMcf/d”) of existing hydrogen sulfide and carbon dioxide treating facilities with an expansion to 450 MMcf/d of capacity expected to be completed in the second half of 2025, and two of the highest capacity and deepest acid gas injection (“AGI”) wells in the basin. As part of this transaction, Enterprise is evaluating locations for a third injection well that would support up to 750 MMcf/d of total treating capacity.
This business is supported by fee-based contracts with long-term acreage dedications, including minimum volume commitments. Additionally, Piñon Midstream’s monitoring, reporting, and verification (“MRV”) plan for permanent sequestration of carbon dioxide in its two AGI wells located at its Dark Horse Treating Facility in
Enterprise estimates this area of the
“We are excited to announce the acquisition of Piñon Midstream,” said A. J. “Jim”
“We believe this acquisition will generate distributable cash flow accretion of
“The Piñon team is thrilled to contribute our unique
“Black Bay has a history of partnering with talented entrepreneurs to build best-in-class businesses, such as Piñon Midstream, and also positioning them as strategic acquisition candidates for larger acquirors seeking growth opportunities. We would like to thank Steven Green, Adam Wilson, David Cargill, Patrick Westerheide and the rest of the Piñon management team for their outstanding and relentless efforts in achieving this very successful outcome,” said Michael LeBourgeois, Managing Partner at Black Bay. Sam Scofield, Vice President at Black Bay, added, “The Piñon team successfully executed on their vision to build and scale critical H2S and CO2 treatment infrastructure for operators in the prolific Delaware Basin.”
This transaction is expected to be completed in the fourth quarter of 2024 subject to customary regulatory approvals. The transaction is expected to be funded using cash on hand and borrowings under Enterprise’s existing commercial paper and bank credit facilities.
Piñon Midstream, LLC retained Piper Sandler & Co. as its financial advisor and Kirkland & Ellis LLP as its legal advisor.
Locke Lord LLP and Sidley Austin LLP served as legal advisors to Enterprise.
About Enterprise
Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and marine terminals; crude oil gathering, transportation, storage and marine terminals; petrochemical and refined products production, transportation, storage, and marine terminals and related services; and a marine transportation business that operates on key
This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. All statements, other than statements of historical fact, included herein that address activities, events, developments or transactions that Enterprise and its general partner expect, believe or anticipate will or may occur in the future are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from expectations, including required approvals by regulatory agencies, the possibility that the anticipated benefits from such activities, events, developments or transactions cannot be fully realized, the possibility that costs or difficulties related thereto will be greater than expected, the impact of competition, and other risk factors included in Enterprise’s reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Except as required by law, Enterprise does not intend to update or revise their respective forward-looking statements, whether as a result of new information, future events or otherwise.
About Piñon Midstream
Piñon Midstream was formed in 2020 through an initial equity commitment from Black Bay Energy Capital, to offer sustainable and cost-effective solutions for sour natural gas production in the
About Black Bay
Black Bay is a private equity firm that invests equity capital in partnership with entrepreneurial management teams who are building high-growth companies in the energy and chemical industries. Black Bay’s strategy is to target companies with innovative products and services that help their clients to reduce costs, improve operations, and achieve sustainability initiatives. The firm’s objective is to drive success through a relentless commitment to establishing and cultivating a true partnership with portfolio company management teams, and a belief that deeply rooted partnerships generate outsized returns by fostering collaboration and creativity. Black Bay is currently investing out of its second fund and has over
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Enterprise Contacts
Libby Strait, Investor Relations, (713) 381-4754 or (866) 230-0745, ecstrait@eprod.com
Rick Rainey, Media Relations, (713) 381-3635, rrainey@eprod.com
Black Bay Contact
Michael LeBourgeois, Managing Partner, (504) 227-3020, info@blackbayenergy.com
Source: Enterprise Products Partners L.P.