|Enterprise Announces New Long-Term Natural Gas Transportation and Storage Contracts with CenterPoint Energy in Texas|
HOUSTON--(BUSINESS WIRE)--July 24, 2006--Enterprise Products Partners L.P. (NYSE:EPD) announced today that it is expanding its leading position in the Texas intrastate natural gas market by signing long-term agreements with CenterPoint Energy Resources Corp. (CERC) to provide firm natural gas transportation and storage services to its natural gas utility, primarily in the Houston metropolitan area. CERC is a subsidiary of CenterPoint Energy, Inc. (NYSE:CNP). Enterprise, owner and operator of one of the largest natural gas pipeline systems in Texas, will provide CenterPoint Energy with up to fourteen billion cubic feet ("Bcf") per year of natural gas service beginning in April 2007. Enterprise's deliveries to CenterPoint Energy through these new contracts marks the first time that Enterprise, the primary natural gas service provider to the San Antonio and Austin markets, has had the opportunity to serve the growing Houston area distribution market.
To provide the new services, Enterprise will enhance its Texas intrastate pipeline system through a combination of pipeline and compression projects, expand its natural gas storage facilities in Texas, acquire certain pipeline laterals located in the Houston area and construct eleven new city gate delivery stations to CenterPoint Energy. The total capital cost of these projects is estimated to be approximately $100 million and will be completed in phases throughout 2006 and 2007. The project is designed to provide CenterPoint Energy with access to growing natural gas supplies from multiple producing regions in Texas and positions Enterprise for further gains in market share in the future. Enterprise currently delivers approximately 146 Bcf per year of natural gas supplies to industrial, commercial and power plant users in the Houston Ship Channel market, which is one of the largest natural gas consuming markets in the U.S.
"Expanding our pipeline system in this key market area highlights our long-term commitment to provide CenterPoint Energy access to flexible and reliable natural gas supplies for its growing customer base in the Greater Houston area," said Robert G. Phillips, Enterprise's President and Chief Executive Officer. "These new contracts confirm the attractiveness of the Enterprise Texas pipeline system, which is well positioned to gather, process and deliver increased natural gas production to our market area customers from the Barnett Shale, Permian basin and emerging new development plays in South Texas."
Enterprise has one of the largest natural gas pipeline systems in Texas with over 8,200 miles of pipe that access major supply basins in North Texas (Barnett Shale), East Texas (Bossier), South Texas (Wilcox and Vicksburg) and West Texas (Permian). It is also connected to all major Texas markets including the cities of San Antonio, Austin, Dallas Fort Worth, Beaumont, Corpus Christi, Houston and the Houston Ship Channel area, as well as 19 natural gas-fired power plants. Enterprise has 10 natural gas processing plants in Texas with the capacity to process two billion cubic feet per day of natural gas. Total throughput on the Texas pipeline system was approximately 3.4 BBtu/d in the first half of 2006.
Recently, Enterprise extended its pipeline system in South Texas through the purchase of the Cerrito natural gas gathering system in South Texas for $325 million. This acquisition provides Enterprise processing plants with a long-term source of rich natural gas production and provides markets in Texas with access to a growing source of pipeline quality residue gas. Additionally, Enterprise recently completed an expansion of its 30" West Texas pipeline system, for approximately $27 million, which provides 120 MMcf/d of new capacity to bring increasing Barnett Shale and Permian basin production into the Central Texas and Gulf Coast markets.
Enterprise Products Partners L.P. is one of the largest publicly traded energy partnerships with an enterprise value of approximately $15 billion, and is a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs and crude oil. Enterprise transports natural gas, NGLs and crude oil through approximately 33,100 miles of onshore and offshore pipelines and is an industry leader in the development of midstream infrastructure in the United States and the Gulf of Mexico. Services include natural gas transportation, gathering, processing and storage; NGL fractionation (or separation), transportation, storage, and import and export terminaling; crude oil transportation and offshore production platform services. For more information, visit Enterprise on the web at www.epplp.com. Enterprise Products Partners L.P. is managed by its general partner, Enterprise Products GP LLC, which is wholly owned by Enterprise GP Holdings L.P. (NYSE:EPE). For more information on Enterprise GP Holdings L.P., visit its website at www.enterprisegp.com.
This press release contains various forward-looking statements and information that are based on Enterprise's beliefs and those of its general partner, as well as assumptions made by and information currently available to Enterprise. When used in this press release, words such as "anticipate," "project," "expect," "plan," "goal," "forecast," "intend," "could," "believe," "may," and similar expressions and statements regarding the plans and objectives of Enterprise for future operations, are intended to identify forward-looking statements. Although Enterprise and its general partner believe that such expectations reflected in such forward-looking statements are reasonable, neither Enterprise nor its general partner can give assurances that such expectations will prove to be correct. Such statements are subject to a variety of risks, uncertainties and assumptions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, Enterprise's actual results may vary materially from those Enterprise anticipated, estimated, projected or expected. Among the key risk factors that may have a direct bearing on Enterprise's results of operations and financial condition are:
-- fluctuations in oil, natural gas and NGL prices and production due to weather and other natural and economic forces;
-- a reduction in demand for its products by the petrochemical, refining or heating industries;
-- the effects of its debt level on its future financial and operating flexibility;
-- a decline in the volumes of NGLs delivered by its facilities;
-- the failure of its credit risk management efforts to adequately protect it against customer non-payment;
-- terrorist attacks aimed at its facilities; and
-- the failure to successfully integrate its operations with assets or companies, if any that it may acquire in the future.
Enterprise has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
CONTACT: Enterprise Products Partners L.P., Houston
SOURCE: Enterprise Products Partners L.P.