HOUSTON - Genesis Energy LP has agreed to purchase the offshore pipeline and services business of Enterprise Products Partners LP for approximately $1.5 billion in cash.
Genesis will assume ownership interest in Enterprise’s Gulf of Mexico assets in nine crude oil pipeline systems, nine natural gas pipeline systems and six offshore hub platforms. According to a release from Enterprise, this totals approximately 2,300 miles of pipeline.
Genesis also announced it would fund the acquisition through a series of public offerings. The company will offer $750 million in senior unsecured notes due in 2022 and 9 million common units of limited partner interests.
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