Houston-based midstream company Easton Energy recently announced that it has agreed to sell its Gulf Coast Liquids Pipeline System to ONEOK for about $280 million, subject to customary price adjustments. Easton will retain and continue operating its natural gas liquids (NGL) and olefins storage business located in Markham, Texas.
The system in the deal includes approximately 450 miles of NGL and hydrocarbon pipelines throughout the Texas and Louisiana Gulf Coast midstream corridors for NGL and olefin service.
Easton’s salt dome storage infrastructure is located between NGL and petrochemical markets in Mont Belvieu and Corpus Christi, Texas. And this infrastructure includes brine handling facilities and multiple salt dome wells with about 40 million barrels of NGL and olefins storage capacity.
Easton expects to close the deal by mid-year 2024. And closing is subject to customary conditions.
Easton is a portfolio company of Cresta Fund Management, a Dallas-based private equity fund that manages over $1.6 billion of capital.
KEY QUOTES:
“These pipelines are a critical piece of the U.S. Gulf Coast NGL and hydrocarbon value chain. This transaction recognizes value for our customers, shareholders, and our business partners. We will now pivot our focus to our remaining business, our NGL and olefins storage business.”
– G.R. “Jerry” Cardillo, Easton’s Chief Executive Officer
“This transaction confirms the potential Cresta saw in these pipelines when we acquired them in 2018. We are enthusiastic about Easton’s sharpened focus on its storage business and are excited about its ability to provide services to a variety of different NGL customers.”
– Chris Rozzell, Cresta’s Managing Partner
