Genesis Energy Acquires Enterprise Offshore Pipeline Busines

Genesis Energy has entered into an agreement with an affiliate of Enterprise Products
Partners to acquire the offshore pipeline and services business of Enterprise and its affiliates for approximately $1.5 billion. 

The Enterprise offshore business serves some of the most active drilling and development regions in the United States including deepwater production fields in the Gulf of Mexico offshore Texas, Louisiana, Mississippi and Alabama. 

The Enterprise offshore business assets include approximately 2,350 miles of offshore crude oil and natural gas pipelines and six offshore hub platforms, including a 36 percent interest in the Poseidon Oil Pipeline System (Poseidon), a 50 percent interest in the Southeast Keathley Canyon Oil Pipeline System (SEKCO) and a 50 percent interest in the Cameron Highway Oil Pipeline System (CHOPS). 

The Enterprise offshore business assets will complement and substantially expand Genesis Energy’s existing offshore pipelines segment which primarily consists of interests in three oil pipelines—Poseidon (28 percent), SEKCO (50 percent), and CHOPS (50 percent).

The Enterprise offshore business generates a substantial majority of its cash flow under long-term, fee-based contracts with high-quality customers and no direct exposure to commodity prices.

Grant E. Sims, the Chief Executive Officer of Genesis, commented “The acquisition of
Enterprise’s offshore business is an exciting growth opportunity for us. These offshore assets will substantially enlarge our portfolio of strategic infrastructure in the Gulf of Mexico, which is one of the most prolific producing regions in the United States. 

“We believe the acquisition will be immediately accretive to our cash available for distribution per common unit and will improve our credit metrics over time, which should accelerate an increase in our credit ratings in the future.”

Citigroup Global Markets Inc. acted as financial advisor to Genesis for the acquisition.