UpdateUS Enterprise completes NGL merger with Duncan Energy

07 September 2011 19:53  [Source: ICIS news]

(updates throughout)

HOUSTON (ICIS)--Enterprise Products Partners has completed its merger with Duncan Energy Partners, the Houston-based provider of midstream services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products and petrochemicals, the companies said on Wednesday.

“The completion of this merger is a major event in the history of Enterprise Products Partners,” Enterprise CEO Michael Creel said.

“In addition to being immediately accretive in terms of distributable cash flow per unit, this merger is the last step in simplifying Enterprise’s commercial and organisational structure,” Creel added.

The companies first announced the merger plan in February.

Enterprise had set up Duncan in 2006 as a listed subsidiary to acquire and operate midstream energy asset. Prior to the merger, Enterprise owned 100% of the general partner of Duncan Energy Partners and about 58% of the outstanding common units of Duncan Energy Partners.

Under the merger, Duncan unitholders received 1.01 of Enterprise common units for each Duncan unit, Enterprise said without disclosing the overall transaction value

Duncan’s common units – ticker symbol DEP - will be delisted and no longer trade publicly as of opening of the New York Stock exchange on Thursday.

In related news, Enterprise said this week it will take part in a project to build a 580-mile (933km) pipeline to ship NGLs from west and central Texas, the Rocky Mountains and southern Oklahoma to petrochemicals markets around Houston on the US Gulf coast.

($1 = €0.72)

By: Stefan Baumgarten
+1 713 525 2653

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