Saturday, December 4, 2021
64.4 F
Fort Worth

Pioneer and Reliance selling joint business to Enterprise

🕐 1 min read

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.

Related Articles

Our Digital Sponsors

Latest Articles

Fort Worth Business Press Logo
This advertisement will close in
Click here to continue to Fort Worth Business Press

Not ready to subscribe?

Try a few articles on us.

Enter your email address and we will give you access to three articles a month, to give us a try. You also get an opportunity to receive our newsletter with stories of the day.

This field is for validation purposes and should be left unchanged.

Get our email updates

Stay up-to-date with the issues, companies and people that matter most to business in the Fort Worth.

  • Restaurants
  • Technology
  • and more!

FWBP Morning Brief

FWBP 5@5

Weekend Newsletter

  • Banking & Finance
  • Culture
  • Real Estate