One of Enterprise Products Partners L.P.’s affiliates has executed a definitive agreement to acquire the midstream business and assets of Azure Midstream Partners, L.P. and its operating subsidiaries (Azure) in East Texas and North Louisiana.
The agreement came as a result of Azure’s bankruptcy auction proceedings, which Enterprise won with a bid of US$189 million. The United States Bankruptcy Court for the Southern District of Texas entered an order approving the sale by Azure to Enterprise’s affiliate on 15 March 2017.
The assets include over 960 miles of natural gas gathering pipelines, three natural gas processing facilities with an aggregate capacity of approximately 210 million ft3/d and two 10 000 bpd NGL pipelines. The system serves production from the Haynesville shale, Bossier, Cotton Valley and Travis Peak formations.
William Ordemann, Executive Vice President of Enterprise’s General Partner, said: “These assets are very complementary to our East Texas NGL, Texas Intrastate natural gas pipeline, and our Haynesville gathering and Acadian natural gas pipeline systems. This transaction is expected to be immediately accretive to our distributable cash flow per unit.”
The transaction is subject to customary regulatory approval and closing conditions. Enterprise expects to close the transaction as soon as practicable after such regulatory approvals and closing conditions have been satisfied, which is expected to occur in as early as April 2017.
Read the article online at: https://www.worldpipelines.com/business-news/16032017/enterprise-to-acquire-azure-system/