16.07.2015 12:36:00
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Genesis Energy To Buy Enterprise Offshore Pipeline&Services Business For $1.5Bln
(RTTNews) - Genesis Energy, L.P. (GEL) announced that it has entered into a purchase and sale agreement with an affiliate of Enterprise Products Partners L.P. to acquire the offshore pipeline and services business of Enterprise and its affiliates for approximately $1.5 billion.
The acquisition is expected to close in July 2015.
The Enterprise offshore business serves some of the most active drilling and development regions in the United States, including deepwater production fields in the Gulf of Mexico offshore Texas, Louisiana, Mississippi and Alabama. The Enterprise offshore business assets include approximately 2,350 miles of offshore crude oil and natural gas pipelines and six offshore hub platforms, including a 36% interest in the Poseidon Oil Pipeline System (Poseidon), a 50% interest in the Southeast Keathley Canyon Oil Pipeline System (SEKCO) and a 50% interest in the Cameron Highway Oil Pipeline System (CHOPS).
The Enterprise offshore business assets will complement and substantially expand our existing offshore pipelines segment, which is primarily comprised of interests in three oil pipelines—Poseidon (28%), SEKCO (50%), and CHOPS (50%). The Enterprise offshore business generates a substantial majority of its cash flow under long-term, fee-based contracts with high-quality customers and no direct exposure to commodity prices.
Separately, Genesis Energy, L.P. announced the commencement of a registered underwritten public offering of 9 million common units representing limited partner interests.
It expects to grant the underwriters a 30-day option to purchase up to 1.35 million additional common units from us. It intends to use the net proceeds from the offering, including any net proceeds from the underwriters' exercise of their option to purchase additional common units, to fund a portion of the purchase price for its recently announced pending acquisition of the offshore pipeline and services business of Enterprise Products Operating LLC and its affiliates.
It intends to use any remaining net proceeds for general partnership purposes, including funding acquisitions (including organic growth projects) or repaying a portion of the borrowings outstanding under our revolving credit facility.
If the acquisition does not close, It intends to use all of the net proceeds, including any net proceeds from the underwriters' exercise of their option to purchase additional common units, for general partnership purposes, including funding acquisitions (including organic growth projects) or repaying a portion of the borrowings outstanding under our revolving credit facility.
Additionally, Genesis Energy announced the commencement of a registered underwritten public offering of $750 million in aggregate principal amount of senior unsecured notes due 2022. The notes will be co-issued with subsidiary, Genesis Energy Finance Corporation, and will be guaranteed, with certain exceptions, by substantially all of our existing and future subsidiaries.
The company intends to use net proceeds from the offering to fund a portion of the purchase price for its recently announced pending acquisition of the offshore pipelines and services business of Enterprise Products Operating LLC and its affiliates.
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Aktien in diesem Artikel
Enterprise Products Partners L.P. | 32,82 | 1,45% | |
Genesis Energy LpShs | 11,78 | 1,55% |