Enterprise Completes Purchase of Remaining Interest in Dixie Pipeline Company and Dixie Terminals and Storage Company
2008-08-06 14:30:00
Enterprise Completes Purchase of Remaining Interest in Dixie Pipeline Company and Dixie Terminals and Storage Company
HOUSTON–(EMWNews)–Enterprise Products Partners L.P. (NYSE:EPD) today announced that its
Enterprise Products Operating LLC subsidiary has acquired the remaining
25.8 percent interest in Dixie Pipeline Company and Dixie Terminals and
Storage Company (“Dixie”)
from BP. With this transaction, Enterprise now owns 100 percent of
Dixie, which includes a 1,300-mile pipeline system ranging in size from
six inches to 12 inches in diameter that delivers propane to seven
states throughout the Gulf Coast and southeastern United States.
Enterprise acquired its initial 12.5 percent interest in Dixie in
September 1999.
“Increasing our ownership of Dixie has been an
ongoing strategic goal for Enterprise,” said
Michael A. Creel, Enterprise president and chief executive officer. “As
sole owner of Dixie, our focus will be on pursuing initiatives designed
to increase utilization of the system and promote growth opportunities
for the partnership and our investors.”
Originating at the partnership’s Mont Belvieu,
Texas fractionation complex, Dixie serves as an important link to
residential and commercial propane users in several key market areas and
represents a vital component of Enterprise’s
integrated energy value chain.
“The transaction will have no impact on the
Dixie employees who have contributed greatly to the success of the
company and whose experience and expertise will be vital to maintaining
the standard of excellence that our customers have come to expect,”
said Creel.
The Pipeline Company currently has the capability to transport in excess
of 160,000 barrels per day. The Terminals and Storage Company assets are
comprised of eight terminal locations with approximately 660,000 barrels
of storage capacity. In addition, the pipeline serves other third-party
terminals, storage facilities and delivery locations.
Enterprise Products Partners L.P. is one of the largest publicly traded
partnerships with an enterprise value of approximately $21 billion, and
is a leading North American provider of midstream energy services to
producers and consumers of natural gas, NGLs, crude oil and
petrochemicals. Enterprise transports natural gas, NGLs, crude oil and
petrochemical products through approximately 35,000 miles of onshore and
offshore pipelines. Services include natural gas gathering, processing,
transportation and storage; NGL fractionation (or separation),
transportation, storage and import and export terminaling; crude oil
transportation; offshore production platform services; and petrochemical
transportation and 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, visit its
website at www.enterprisegp.com.
This news release includes forward-looking statements. Except
for the historical information contained herein, the matters discussed
in this news release are forward-looking statements that involve certain
risks and uncertainties, such as the partnership’s
expectations regarding the operations of Dixie. These risks and
uncertainties include, among other things, insufficient cash from
operations, market conditions, governmental regulations and factors
discussed in Enterprise Products Partners L.P.’s
filings with the Securities and Exchange Commission. If any of
these risks or uncertainties materializes, or should underlying
assumptions prove incorrect, actual results or outcomes may vary
materially from those expected. The partnership disclaims any
intention or obligation to update publicly or reverse such statements,
whether as a result of new information, future events or otherwise.
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Enterprise Products Partners L.P., Houston Relations Relations |
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