Genesis buys Enterprise pipelines for $1.5 bln

Houston-headquartered Genesis Energy announced plans to purchase the offshore pipeline and service component of hydrocarbons pipeline operator Enterprise Products Partners on Thursday.

The $1.5-billion transaction will net the company six offshore hub platforms and around 3,800 kilometres of hydrocarbons pipelines. Once completed, Genesis Energy will own a 64-percent stake in the Poseidon Oil Pipeline system. The company will also become the full owner of Southeast Keathey Canon Oil Pipeline and the Cameron Highway Oil Pipeline systems after acquiring an additional 50-percent interest from the deal.

The acquisition will be financed through the company’s sale of $750 million in senior unsecured notes due in 2022 and $418 million worth of common units.

Enterprise Products Partners plans to use the capital generate from the sale of its pipeline business to expand into the midstream sector. The transaction is expected to close in the third quarter of 2015.

 

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