Enterprise acquires JV interests from Western Midstream for $375M

Enterprise Products Partners L.P. (EPD) announced that certain of its affiliates have acquired interests in Whitethorn Pipeline Company LLC and Enterprise EF78 LLC from affiliates of Western Midstream Partners, LP (WES) in a series of debt-free transactions for $375M in total cash consideration. Enterprise completed the acquisition of Western’s 20 percent equity interest in Whitethorn, which owns the 620,000 barrel per day Midland-to-Sealy portion of the Midland-to-ECHO 1 crude oil pipeline. Enterprise now owns 100 percent of Whitethorn. Enterprise also completed the acquisition of Western’s 25 percent equity interest in EF78, which owns natural gas liquids fractionators 7 and 8 located in Mont Belvieu, Texas. These fractionators have an aggregate capacity of 170,000 barrels per day. Enterprise now owns 100 percent of EF78. “We are pleased to complete these transactions to consolidate ownership in these midstream assets,” said A. J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner. “The pipeline asset serves the prolific Permian Basin, and the fractionation assets are integral to our NGL system. These transactions are immediately accretive to Enterprise’s distributable cash flow per unit.”