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Energy Transfer completes acquisition of Enable Midstream

Published by , Editorial Assistant
World Pipelines,

Dallas-based Energy Transfer LP and Oklahoma City-based Enable Midstream Partners, LP have announced the completion of their previously announced merger. The terms of agreement were approved earlier this year by Enable’s two largest unitholders, CenterPoint Energy, Inc. (CNP) and OGE Energy Corp. (OGE), which together owned approximately 79% of Enable’s outstanding common units. Effective with the opening of the market on 3 December, 2021, Enable’s common units will discontinue trading on the NYSE as a result of the acquisition.

Energy Transfer now owns and operates more than 114 000 miles of pipelines and related assets in all of the major US producing regions and markets across 41 states, further solidifying its leadership position in the midstream sector. The completion of the transaction is immediately accretive to Energy Transfer and furthers Energy Transfer’s deleveraging efforts. It also adds significant fee-based cash flows from fixed-fee contracts. Additionally, the combined operations of the two companies is expected to generate annual run-rate cost and efficiency synergies of more than US$100 million, excluding potential financial and commercial synergies.

The acquisition significantly strengthens Energy Transfer’s midstream and gas transportation systems by adding Enable’s natural gas gathering and processing assets in the Anadarko Basin in Oklahoma, along with intrastate and interstate pipelines in Oklahoma and surrounding states. It also boosts Energy Transfer’s gas gathering and processing assets in the Arkoma basin across Oklahoma and Arkansas, as well as in the Haynesville Shale in East Texas and North Louisiana.

Enable common unitholders received 0.8595 ET common units for each Enable common unit. Additionally, each outstanding Enable Series A preferred unit was exchanged for 0.0265 Series G preferred units of Energy Transfer. The transaction also included a $10 million cash payment for Enable’s general partner.

Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in North America, with a strategic footprint in all of the major U.S. production basins. Energy Transfer is a publicly traded limited partnership with core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; and NGL fractionation. Energy Transfer also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco LP (NYSE: SUN), and the general partner interests and 46.1 million common units of USA Compression Partners, LP (NYSE: USAC).

Enable’s assets include approximately 14 000 miles of natural gas, crude oil, condensate and produced water gathering pipelines, approximately 2.6 billion ft3/d of natural gas processing capacity, approximately 7800 miles of interstate pipelines (including Southeast Supply Header, LLC of which Enable owns 50%), approximately 2200 miles of intrastate pipelines and seven natural gas storage facilities comprising 84.5 billion ft3 of storage capacity.

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