How You Should Think About Enterprise's Big Acquisition
Acquisitions aren't new in the North American midstream sector. But Enterprise Products Partners' (NYSE: EPD) new $3.25 billion deal should get investors thinking about mergers and acquisitions in the sector a little differently. Here's a look at Enterprise's acquisition and what it might mean for the future.
In early January, midstream master limited partnership (MLP) Enterprise Products Partners agreed to acquire privately-held Navitas Midstream Partners for $3.25 billion in cash from an affiliate of Warburg Pincus. Navitas owns 1,750 miles of pipelines and cryogenic natural gas processing facilities that, upon completion of a major project in 2022, will have over 1 billion cubic feet per day of processing capacity. It operates in the Midland Basin of the Permian.
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Source Fool.com
