The deal, announced July 16, was completed July 24 with a purchase price of approximately $1.5 billion in cash. 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 will complement and substantially expand Genesis’ existing offshore pipelines segment.
“We are pleased to complete this transaction with Genesis,” said Michael A. Creel, CEO of Enterprise’s general partner. “The proceeds from this sale significantly enhance our financial flexibility. Including the proceeds we received today [July 24], our current liquidity, consisting of unrestricted cash and available borrowing capacity under our credit facilities, is over $6 billion. This liquidity gives us flexibility in funding our growth capital projects, including attractive growth projects in the Eagle Ford and Permian regions, while eliminating our need to raise equity capital for the remainder of 2015 based on current expectations.”
Headquartered in Houston, Genesis is a diversified midstream energy master limited partnership and its operations include onshore and offshore pipeline transportation, refinery services, marine transportation and supply and logistics.