Enterprise Products Partners announced its pending acquisition of Delaware Basin-based Piñon Midstream on Aug. 21 in a $950 million, cash-only deal.
With the acquisition, Enterprise gains control of a developing regional player in gas processing and sour gas disposal. In the announcement of the deal, Enterprise called Piñon’s assets “highly complementary” to its midstream system, expanding the company’s natural gas processing footprint with an entry point into the eastern flank of the Delaware.
“We believe the Piñon management team has developed the premier sour natural gas treating system in the Delaware Basin,” said Jim Teague, co-CEO of Enterprise’s general partner. “These assets accelerate our entry into this region by at least three or four years.”