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    Enterprise Products affiliate to acquire Navitas Midstream


Acquired assets supported by up to 10,000 future drilling locations

by: Dale Lunan

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Enterprise Products affiliate to acquire Navitas Midstream

Enterprise Products Partners said January 10 an affiliate had entered into a definitive agreement to acquire Navitas Midstream Partners from an affiliate of Warburg Pincus in an all-cash, debt-free transaction valued at $3.25bn.

Navitas Midstream provides natural gas gathering, treating and processing services in the Permian Midland Basin. Its assets there include 2,816 km (1,750 miles) of pipelines and, with the completion of a new plant expected in Q1 2022, more than 1bn ft3/day of cryogenic natural gas processing capacity.

The acquisition will give Enterprise Partners an entry point into the Midland Basin, which is home to an estimated 20% of all active onshore drilling rigs in the US. The Navitas system is anchored by long-term contracts and acreage dedications by more than 40 producers, who collectively control up to 10,000 potential drilling locations – a 15-year inventory based on current active rigs counts.

The transaction is expected to close in Q1 2022, subject to customary regulatory approvals.