Company Announces Acquisition of Navitas Midstream

HOUSTON–(Business WIRE)–Organization Solutions Companions L.P. (NYSE: EPD) currently introduced that its affiliate has entered into a definitive agreement to get Navitas Midstream Associates, LLC from an affiliate of Warburg Pincus LLC in a personal debt-cost-free transaction for $3.25 billion in dollars thought. Navitas Midstream supplies pure fuel collecting, treating and processing providers in the core of the Midland Basin of the Permian. Navitas Midstream’s property include somewhere around 1,750 miles of pipelines and over 1 billion cubic feet per working day of cryogenic pure gasoline processing capability with the completion of the Leiker plant, which is anticipated in the initially quarter of 2022.

This acquisition delivers Enterprise’s purely natural gasoline processing and NGL organization with an entry level into the Midland Basin, one particular of the most financial and prolific crude oil locations in the United States. Drilling activity in the Midland Basin at the moment signifies somewhere around 20 p.c of lively onshore drilling rigs in the U.S. The process is anchored by prolonged-phrase contracts and acreage dedications with a diverse group of in excess of forty unbiased and publicly owned producers.

Navitas Midstream delivers visibility to long term progress with up to 10,000 drilling destinations, or about fifteen years of drilling stock primarily based on current rig counts, on the focused acreage. The process is supported by fee-primarily based contracts that supply additional revenues based mostly on commodity rates.

“We are pleased to announce the acquisition of Navitas Midstream,” mentioned A. J. “Jim” Teague, co-chief govt officer of Enterprise’s common lover. “The Navitas administration group has created a premier system in the heart of the Midland Basin. The Delaware and Midland Basins are the two most desirable regions in the U.S. in terms of crude oil, normal gasoline and NGL reserves with each owning up to nine geologic horizons. We do not have a normal fuel or NGL existence in the Midland Basin other than downstream pipelines. This acquisition will give us an entry issue into the basin.”

“The technique, which include its significant footprint of very low stress natural gasoline collecting, is an desirable processing franchise that gives price added companies to producers,” mentioned Randy Fowler, co-main executive officer and main money officer of Enterprise’s general spouse. “We feel this acquisition will be instantly accretive to distributable funds circulation for every unit. Dependent on the present outlook for commodity price ranges in 2023, which would be our very first full yr of possession, we believe distributable income flow accretion will be in the variety of $.18 to $.22 for each device. This expenditure will present Business with an desirable return on money and guidance more money returns to our constrained partners by distribution expansion and buybacks of common units.”

“We are thrilled to contribute our special Midland Basin program to Organization, 1 of the leading midstream operators,” reported R. Bruce Northcutt, CEO of Navitas. “I am very pleased of what the Navitas team accomplished about the previous 7 a long time, and would also like to thank Warburg Pincus for their near partnership together the way.”

This transaction is predicted to be accomplished in the initially quarter of 2022 subject matter to customary regulatory approvals. The transaction is envisioned to be funded employing funds on hand and borrowings underneath the partnership’s existing professional paper and lender credit score amenities.

Organization Merchandise Partners L.P. is just one of the largest publicly traded partnerships and a primary North American service provider of midstream vitality companies to producers and shoppers of normal fuel, NGLs, crude oil, refined solutions and petrochemicals. Expert services consist of: normal gas accumulating, dealing with, processing, transportation and storage NGL transportation, fractionation, storage and maritime terminals crude oil collecting, transportation, storage and maritime terminals petrochemical and refined merchandise creation, transportation, storage, and marine terminals and similar services and a marine transportation enterprise that operates on critical U.S. inland and intracoastal waterway units. The partnership’s property contain close to 50,000 miles of pipelines 260 million barrels of storage capability for NGLs, crude oil, refined solutions and petrochemicals and 14 billion cubic ft of natural gasoline storage capability. Be sure to take a look at for additional data.

This push release features “forward-wanting statements” as defined by the Securities and Trade Fee. All statements, other than statements of historical fact, integrated herein that tackle actions, occasions, developments or transactions that Company and its standard associate anticipate, feel or foresee will or may perhaps happen in the long term are ahead-searching statements. These ahead-wanting statements are subject to challenges and uncertainties that may possibly trigger real final results to differ materially from anticipations, such as necessary approvals by regulatory organizations, the possibility that the predicted advantages from these activities, events, developments or transactions simply cannot be entirely recognized, the risk that expenditures or challenges relevant thereto will be larger than anticipated, the influence of competitors, and other chance things involved in Companys experiences filed with the Securities and Exchange Commission. Viewers are cautioned not to area undue reliance on these forward-searching statements, which communicate only as of their dates. Except as expected by regulation, Enterprise does not intend to update or revise their respective forward-seeking statements, whether as a result of new facts, future functions or otherwise.