|Enterprise to Acquire Midstream Energy Assets in Louisiana|
|HOUSTON, Jul 10, 2002 (BUSINESS WIRE) -- Enterprise Products Partners L.P.
(NYSE:EPD) announced that an affiliate of its operating partnership has executed
an agreement to acquire 100% of the Toca-Western natural gas processing plant
and natural gas liquids fractionator from Western Gas Resources Inc. (NYSE:WGR).
The purchase price is $32.5 million in cash.
The facilities are located in St. Bernard Parish, La., near Enterprise's existing Toca natural gas processing plant. These plants provide midstream energy services to producers of natural gas from the continental shelf and deepwaters of the Gulf of Mexico. Included in the purchase are a natural gas processing plant with a capacity of 160 million cubic feet per day and a fractionator that can separate 14,200 barrels per day of mixed natural gas liquids into propane, normal butane, isobutane and natural gasoline. The complex processes gas that is delivered by Southern Natural Gas Pipeline (SONAT). The purchase also includes storage and truck, rail and barge loading facilities which support the complex.
The purchase is subject to a preferential purchase right by the owners of the Yscloskey, La., natural gas processing plant. Enterprise is one of the largest owners in the Yscloskey plant with a 28.2% ownership interest. Should any of these owners exercise their respective right to acquire an interest in the Toca-Western facilities, it would reduce the ownership interest that Enterprise is acquiring and the related purchase price. Because of the preferential right, this transaction is expected to close on Sept. 24, 2002 with an effective date of June 1, 2002.
"We are pleased to announce this agreement to acquire Toca-Western," said O.S. "Dub" Andras, president and chief executive officer of Enterprise. "By adding these assets to our existing system in Louisiana, we believe we can increase the value of the related natural gas and NGL production for our producing customers in the Central Gulf of Mexico. Upon closing, we expect that this acquisition will be immediately accretive to our partnership's cash flow."
Enterprise Products Partners L.P. is the second largest publicly traded, midstream energy partnership with an enterprise value of approximately $5 billion. Enterprise is a leading provider of midstream energy services to producers and consumers of natural gas and natural gas liquids ("NGLs"). The Company's services include natural gas transportation, processing and storage and NGL fractionation (or separation), transportation, storage and import/export terminaling. The Company's assets are geographically focused on the United States' Gulf Coast, which accounts for approximately 55 percent of both domestic natural gas and NGL production and 75 percent of domestic NGL demand.
This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 based on the beliefs of the Company, as well as assumptions made by, and information currently available to, management. Although Enterprise believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.
CONTACT: Enterprise Products Partners L.P., Houston Randy Fowler, 713/880-6694 www.epplp.com