Energy Transfer to buy Enable Midstream for $7.2bn

US-based midstream energy company Energy Transfer has agreed to acquire Enable Midstream Partners in a deal worth roughly $7.2bn, including debt.

Under the agreement, shareholders of Enable Midstream will receive 0.8595 Energy Transfer common units for each common unit held.

Additionally, each of the Enable Midstream Series A preferred units will be exchanged for 0.0265 Energy Transfer Series G preferred units.

The transaction includes a cash payment of $10m for Enable’s general partner.

Energy Transfer expects the transaction to bolster its NGL infrastructure through the addition of natural gas gathering and processing assets in the Anadarko Basin in Oklahoma.

Enable Midstream owns, operates, and develops natural gas and crude oil infrastructure assets including approximately 14,000 miles of natural gas, crude oil, condensate, and produced water gathering pipelines.

The firm has a processing capacity of around 2.6 billion cubic feet per day (Bcf/d) of natural gas.

Energy Transfer expects the acquisition to expand its presence in multiple regions while providing increased connectivity for its natural gas and natural gas liquids (NGL) transportation businesses.

Energy Transfer said in a press statement: “The combination of Energy Transfer’s significant infrastructure with Enable’s complementary assets will allow the combined company to pursue additional commercial opportunities and achieve cost savings while enhancing Energy Transfer’s ability to serve customers.

“Energy Transfer expects the combined company to generate more than $100 million of annual run-rate cost and efficiency synergies, excluding potential financial and commercial synergies.

“Potential commercial synergies include significant incremental earnings, which may result from integrating Enable’s Anadarko gathering and processing complex with Energy Transfer’s fractionation assets on the US Gulf Coast.”

In 2019, Energy Transfer and SemGroup have completed $5.1bn merger deal.