NEW YORK (AP) — Pioneer Natural Resources Co. and India’s Reliance Industries Ltd. have agreed to sell a pipeline and processing company to Enterprise Products Partners LP for $2.15 billion.
Irving, Texas-based Pioneer currently owns 50.1 percent of the Eagle Ford Shale Midstream business, while Reliance owns 49.9 percent of that business.
Enterprise Products is a gas and oil pipeline company based in Houston.
The Eagle Ford Shale Midstream business was formed in 2010 to construct facilities to provide gathering and handling services for condensate and gas produced from wells in the Eagle Ford Shale. The system currently consists of 10 central gathering plants and approximately 460 miles of pipelines.
In a statement, Pioneer said the companies will benefit from a reduction in their existing processing and transportation contracts with Enterprise in exchange for extending the contract term to 20 years. Pioneer expects the reduced fees to benefit the companies by about $200 million.
Pioneer Natural shares rose 22 cents to $148.05 in morning trading Monday, while shares of Enterprise Products fell 27 cents to $32.15.