Enterprise to acquire Occidental’s gas gathering affiliate

Enterprise Products Partners L.P. (EPD) announced that affiliates of Enterprise have executed agreements to acquire a natural gas gathering affiliate of Occidental (OXY) and to provide Occidental with natural gas gathering and processing services. The agreements include a long-term dedication of approximately 73,000 acres across four counties in the Midland Basin. Enterprise will acquire Occidental’s affiliate, which owns certain natural gas gathering systems in the Midland Basin, in a debt-free transaction for $580 million in cash consideration. Assets include approximately 200 miles of natural gas gathering pipelines that support Occidental’s production activities in the Midland Basin. With access to more than 1,000 drillable locations, these systems will immediately expand Enterprise’s natural gas gathering footprint in the Midland Basin and provide long-term development visibility. This strategic acquisition will be complemented by the addition of the new Athena natural gas processing plant Enterprise will be building. The plant will have the capacity to process 300 million cubic feet per day of natural gas and extract up to 40,000 barrels per day (“BPD”) of natural gas liquids (“NGL”). Athena is expected to begin service during the fourth quarter of 2026, at which time Enterprise’s Midland Basin assets will have the capability to process 2.2 billion cubic feet per day of natural gas and extract 310,000 BPD of NGLs. The investments in the Athena plant and expansions of Enterprise’s Midland Basin gathering system are included in the company’s estimate of growth capital expenditures of $4.0 billion to $4.5 billion for 2025 and $2.2 billion to $2.5 billion for 2026.