Enterprise Products Partners announced on August 21, 2024, that it has entered into a definitive agreement to acquire Piñon Midstream, LLC for $950 million in cash consideration. This acquisition is a debt-free transaction and is expected to significantly expand Enterprise's operational footprint.
The acquired assets include natural gas gathering and treating services, with a specific focus on sour gas treating and carbon capture capabilities in the Delaware Basin. This strategic move is designed to accelerate Enterprise's entry into the Delaware Basin, an area where activity has been constrained by a lack of sour natural gas treating and acid gas injection well capacity.
The integration of Piñon Midstream's assets is expected to enhance Enterprise's ability to serve producers in the prolific Delaware Basin. This expansion into a previously restricted area positions the company for new growth opportunities and strengthens its integrated midstream network.
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