Houston- based Enterprise Products Partners L.P. (NYSE:EPD) and Oiltanking Partners (NYSE:OILT) announced today they have entered into a merger agreement. According to the agreement, Oiltanking Partners would merge with a subsidiary of Enterprise in a unit-for-unit exchange. This unit-for-unit exchange would result in a 74 percent increase in cash distributions for Oiltanking Partners unit holders.
Michael A. Creel, chief executive officer of the general partner of Enterprise states,” “We are pleased to announce the execution of this merger agreement that would result in the merger of Oiltanking Partners into Enterprise. The combination of Enterprise’s system of midstream assets and Oiltanking Partners’ access to waterborne markets and crude oil and petroleum products storage assets would extend and broaden Enterprise’s midstream energy services business.” Creel also states, “Upon completion of the merger, Oiltanking Partners unit holders would benefit from Enterprise’s scale, diversification and financial flexibility; visibility to growth driven by over $6 billion of capital projects under construction; a significant increase in cash distributions; and more daily liquidity from ownership of Enterprise common units.”
Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals.