Enterprise Products Partners, one of North America’s largest midstream energy providers, has finalized the debt-free acquisition of Occidental’s natural gas gathering affiliate for $580 million in cash. The deal expands Enterprise’s assets in the Midland Basin, adding an extensive network of approximately 200 miles of natural gas gathering pipelines that directly support Occidental’s production operations.
With this acquisition, Enterprise gains access to more than 1,000 drillable locations, strengthening its position within the basin and providing greater visibility for long-term development.
The newly acquired gathering systems will immediately enhance Enterprise’s collection and transportation capabilities in one of the nation’s most prolific oil and gas regions. As a leading publicly traded partnership, Enterprise Products Partners offers a broad range of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products, and petrochemicals.
Its services include gathering, treating, processing, transporting, and storing natural gas, as well as the handling of NGLs, crude oil, and petrochemicals. Enterprise’s marine transportation business operates across key U.S. inland and intracoastal waterways, further extending its reach.
The partnership’s impressive infrastructure portfolio comprises more than 50,000 miles of pipelines, over 300 million barrels of storage capacity for NGLs, crude oil, refined products, and petrochemicals, as well as 14 billion cubic feet of natural gas storage capacity. This latest acquisition not only increases Enterprise’s operational footprint but also supports Occidental’s ongoing production with reliable infrastructure. The transaction is expected to create long-term value for both companies and ensure a stable supply chain within the Midland Basin, reflecting Enterprise’s commitment to operational excellence and strategic growth in the energy sector.
Advisors: Troutman Pepper Locke and Sidley Austin LLP served as legal advisors to Enterprise, and Skadden, Arps, Slate, Meagher & Flom LLP and White & Case LLP served as legal advisors to Occidental.
