Energy Transfer buying Enable Midstream in $7.2 billion deal

US company Energy Transfer, the developer of the proposed Lake Charles LNG export facility, said on Wednesday it would buy Enable Midstream Partners in an all-equity transaction valued at $7.2 billion.

Under the deal, Enable unitholders will receive 0.8595 of Energy Transfer’s units for each Enable unit.

In addition, each outstanding Enable Series A preferred unit will be exchanged for 0.0265 Series G preferred units of Energy Transfer.

The transaction will also include a $10 million cash payment for Enable’s general partner.

Energy Transfer says the acquisition would increase its footprint across multiple regions and provide increased connectivity for the firm’s natural gas and NGL transportation businesses.

The acquisition will also provide significant gas gathering and processing assets in the Arkoma basin across Oklahoma and Arkansas, as well as the Haynesville Shale in East Texas and North Louisiana.

Moreover, Energy Transfer said the deal would further boost its connectivity to the global LNG market and the growing global demand for natural gas as the world “transitions to cleaner power and fuel sources.”

Energy Transfer expects the combined company to generate more than $100 million of annual run-rate cost and efficiency synergies, excluding potential financial and commercial synergies.

Most Popular

China’s gas imports continue to rise

Natural gas imports during the last month reached about 11.99 million tonnes, rising 18.2 percent compared to 10.14 million tonnes...

PetroVietnam Gas to supply LNG to EVN’s power plant

According to separate statements by PV Gas and EVN, the duo signed the MoU on October 4. The deal includes...

Adnoc Gas drops plan to upgrade Das Island LNG export terminal

"While not proceeding with the LNG2.0 project, we will continue to invest in Das Island, particularly as it remains...

More News Like This

Technip Energies and KBR score Lake Charles LNG contract

Technip Energies announced the award on Friday, saying the contract remains subject to Lake Charles LNG's final investment decision...

Energy Transfer urges DOE to act on Lake Charles LNG export license

Energy Transfer's unit Lake Charles Exports has asked the US DOE for expedited action on its pending application for...

Energy Transfer eyes Lake Charles LNG FID in Q2 2024

Texas-based Energy Transfer could take a final investment decision to build its Lake Charles LNG export facility in Louisiana...

Energy Transfer files application for new Lake Charles LNG export authorization

Texas-based Energy Transfer has filed an application with the US DOE for a new export authorization for the company’s...