Duncan Energy Partners acquires interests in three midstream energy companies
Duncan Energy has acquired a 51% membership interest in Enterprise Texas Pipeline, a 51% general partnership interest in Enterprise Intrastate, and a 66% general partnership interest in Enterprise GC. In aggregate, these companies own more than 8,000 miles of natural gas pipelines with 5.6 billion cubic feet per day (bcf/d) of capacity; a leased natural gas storage facility with 4.4bcf of storage capacity; more than 1,000 miles of natural gas liquids (NGL) pipelines; approximately 18 million barrels of leased NGL storage capacity; and two NGL fractionators with a combined fractionation capacity of 87,000 barrels per day. All of these assets are located in Texas. As consideration for the acquisition, Duncan Energy paid Enterprise $280.5 million in cash and has issued to Enterprise approximately 37.3 million of Class B units of Duncan Energy having a market value of $449.5 million. Richard Bachmann, president and CEO of Duncan Energy, said: "We are very pleased to complete our second drop down transaction with Enterprise especially in light of the volatile conditions in the financial markets. This acquisition significantly expands our base of midstream energy assets in Texas and diversifies our sources of fee-based cash flow."