Enterprise Products Partners LP and TEPPCO Partners LP have completed their merger, making Enterprise the nation’s largest publicly traded partnership with an enterprise value of approximately $30 billion, 48,000 miles of pipelines and market capitalization of $18 billion, it said Monday.
“This strategic combination opens up new avenues of growth for Enterprise by diversifying our asset portfolio, strengthening our presence in key geographic regions and offering new service options, which will give us the opportunity to extend our successful integrated energy value chain business model,” said Enterprise CEO Michael A. Creel.
The deal was announced in June (see Daily GPI, June 30).
A key component of the combined company is a natural gas liquids [NGL] pipeline serving the emerging Marcellus Shale play. “With the TEPPCO assets we will have the only natural gas liquids pipeline through the Marcellus, a potentially huge natural gas shale play that is very rich in liquids and requires an NGL takeaway solution,” Enterprise Chief Commercial Officer Jim Teague said at the time.
TEPPCO is now a wholly owned subsidiary of Enterprise. Common units of Enterprise will continue to be traded on the New York Stock Exchange (NYSE) under the ticker symbol EPD. TEPPCO units, which had been trading on the NYSE under the ticker symbol TPP, will be delisted.
Enterprise expects that the combined administrative services agreement the two partnerships have been operating under since 2005 will help facilitate a smooth transition for customers and investors.
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