Easton Energy is agreeing to sell 450 miles of lines along Southeast Texas coast to ONEOK. (Source: Shutterstock)
Midstream company ONEOK Inc. announced May 13 that the company had agreed to acquire a system of NGL pipelines from Houston-based Easton Energy LLC for approximately $280 million.
The network includes 450 miles of NGL pipelines centered around the Houston Ship Channel, expanding a network already in place for ONEOK. The pipelines currently transport several types of liquids products through a portion of its capacity to existing customers.
"This strategic acquisition provides the quickest pipeline connectivity to and within the critical supply and demand centers for our NGLs, refined products and crude oil assets in the Gulf Coast," Pierce H. Norton II, ONEOK president and CEO, said in a press release about the transaction.
ONEOK plans to connect the pipelines to its Mont Belvieu, Texas, NGL infrastructure and the company’s Houston-based refined products and crude oil infrastructure. The transaction is expected to close mid-2024.
“This transaction recognizes value for our customers, shareholders and our business partners. We will now pivot our focus to our remaining business, our NGL and olefins storage business,” G.R. “Jerry” Cardillo, Easton CEO, stated in a press release.
Easton Energy will continue to operate an NGL and olefins storage facility in Markham, Texas, a small town to the west of Houston.
Easton is a portfolio company of Cresta Fund Management (Cresta), a Dallas-based private equity fund managing over $1.6 billion of capital.
Recommended Reading
McDermott to Sell Storage Business to Mason Capital-led Consortium
2024-10-07 - Roughly seven years after McDermott International acquired CB&I for $6 billion, the storage solutions business is being sold to a consortium led by Mason Capital Management.
Martin Resources Steps Up Offer for Martin Midstream
2024-10-06 - Martin Resources Management will pay $132 for Martin Midstream, which it had previously spun off, after a pair of New York capital groups counteroffered at a higher price.
Matterhorn Express Ramps Up Natural Gas Flow
2024-10-04 - The Matterhorn Express Pipeline flowed 317 MMcf of natural gas to customers on Oct. 1, according to East Daley Analytics.
Uinta Railroad Up for Review as Supreme Court Term Begins
2024-10-03 - Court analysts say a decision on the proposed Uinta Basin railway, coming next year, could have a major impact on the energy industry.
FERC Sides with Williams Over Energy Transfer in Pipeline Dispute
2024-09-30 - The Federal Energy Regulatory Commission has declared that Williams’ disputed Louisiana Energy Gateway project is a gathering network, not a transport line.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.