Friday, May 27 2022 Sign In   |    Register

News Quick Search



Front Page
Power News
Gas News
Today's News
Yesterday's News
Week of May 23
Week of May 16
Week of May 09
Week of May 02
Week of Apr 25
By Topic
By News Partner
News Customization


Pro Plus(+)

Add on products to your professional subscription.
  • Energy Archive News

    Home > News > Gas News > News Article

    Share by Email E-mail Printer Friendly Print

    Enterprise to Purchase Navitas Midstream.

    January 26, 2022 - Entertainment Close - Up


      Enterprise Products Partners reported that its affiliate has entered into a definitive agreement to acquire Navitas Midstream Partners, from an affiliate of Warburg Pincus in a debt-free transaction for $3.25 billion in cash consideration.

      According to a media release, Navitas Midstream provides natural gas gathering, treating and processing services in the core of the Midland Basin of the Permian. Navitas Midstream's assets include approximately 1,750 miles of pipelines and over 1 billion cubic feet per day of cryogenic natural gas processing capacity with the completion of the Leiker plant, which is expected in the first quarter of 2022.

      Enterprise noted the acquisition provides its natural gas processing and NGL business with an entry point into the Midland Basin, one of the most economic and prolific crude oil regions in the United States. Drilling activity in the Midland Basin currently represents approximately 20 percent of active onshore drilling rigs in the U.S. The system is anchored by long-term contracts and acreage dedications with a diverse group of over forty independent and publicly owned producers.

      Navitas Midstream provides visibility to future growth with up to 10,000 drilling locations, or over fifteen years of drilling inventory based on current rig counts, on the dedicated acreage. The system is supported by fee-based contracts that provide additional revenues based on commodity prices.

      "We are pleased to announce the acquisition of Navitas Midstream," said A. J. "Jim" Teague, co-chief executive officer of Enterprise's general partner. "The Navitas management team has developed a premier system in the heart of the Midland Basin. The Delaware and Midland Basins are the two most attractive regions in the U.S. in terms of crude oil, natural gas and NGL reserves with each having up to nine geologic horizons. We do not have a natural gas or NGL presence in the Midland Basin other than downstream pipelines. This acquisition will give us an entry point into the basin."

      "The system, including its large footprint of low pressure natural gas gathering, is an attractive processing franchise that provides value added services to producers," stated Randy Fowler, co-chief executive officer and chief financial officer of Enterprise's general partner. "We believe this acquisition will be immediately accretive to distributable cash flow per unit. Based on the current outlook for commodity prices in 2023, which would be our first full year of ownership, we believe distributable cash flow accretion will be in the range of $0.18 to $0.22 per unit. This investment will provide Enterprise with an attractive return on capital and support additional capital returns to our limited partners through distribution growth and buybacks of common units."

      "We are excited to contribute our unique Midland Basin system to Enterprise, one of the premier midstream operators," said R. Bruce Northcutt, CEO of Navitas. "I am proud of what the Navitas team accomplished over the past seven years, and would also like to thank Warburg Pincus for their close partnership along the way."

      This transaction is expected to be completed in the first quarter of 2022 subject to customary regulatory approvals. The transaction is expected to be funded using cash on hand and borrowings under the partnership's existing commercial paper and bank credit facilities.

      More Information:

      ((Comments on this story may be sent to


    Other Articles - Generation


       Home  -  Feedback  -  Contact Us  -  Safe Sender  -  About Energy Central   
    Copyright © 1996-2022 by CyberTech, Inc. All rights reserved.
    Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.