Houston-based Enterprise Products Partners said this week an affiliate is acquiring Pinon Midstream in a debt-free transaction for $950 million cash. Pinon Midstream provides natural gas gathering and treating services in the core of the eastern Delaware Basin in southeastern New Mexico and west Texas. Pinon’s assets include 50 miles of natural gas gathering and redelivery pipelines, five compressor stations, 270 million cfd of existing hydrogen sulfide and carbon dioxide treating facilities, and two of the highest capacity and deepest acid gas injection wells in the basin.
Enterprise said this area of the Delaware Basin in Lea County, N.M., and Winkler County has more than 7,500 remaining well locations and has access to at least six geologic production benches. Closing is expected in 2024Q4.
A.J. (Jim) Teague, co-CEO and general partner, said Wednesday, “We believe the Pinon management team has developed the premier sour natural gas treating system in the Delaware Basin… These assets are highly complementary to our midstream energy system and provide us an excellent entry point into the eastern flank of the Delaware Basin to expand our natural gas processing footprint.”