HOUSTON–(BUSINESS WIRE)–Enterprise Products Partners L.P. (NYSE: EPD) and Apache Corporation (NYSE and NASDAQ: APA) today announced they have executed a long-term agreement, with Apache committing 100 percent of its Alpine High natural gas liquids (“NGLs”) to Enterprise.
Apache has 336,000 net acres in its Alpine High discovery in the Delaware Basin. Enterprise has committed to accept a minimum of 205,000 barrels per day (“BPD”) of NGLs from Apache.
Enterprise is constructing the 658-mile Shin Oak pipeline from Reeves County to Enterprise’s NGL fractionation and storage complex in Mont Belvieu, Texas. The pipeline is expected to have an initial capacity of 550,000 BPD and is scheduled to be completed in the second quarter of 2019. Apache has an option for a 33 percent equity stake in the Shin Oak pipeline, which is exercisable after the in-service date.
“We are excited to announce our long-term agreements with Apache to support their development of the prolific Alpine High region,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner. “This is another example of Enterprise working with a premier producer in one of the most attractive developments in the U.S. Shin Oak complements Enterprise’s existing foundation of midstream assets and is part of our comprehensive solution for providing flow assurance and market choices from multiple basins, in addition to facilitating continued production growth in an area, which is expected to double over the next four years.”
“Alpine High is an enormous hydrocarbon resource that encompasses rich gas, dry gas and oil-bearing horizons. This agreement provides an efficient long-term outlet for the tremendous volume of NGLs that Apache plans to produce from the rich gas window of the play.
“Today’s announcement with Enterprise is another step in supporting our full-field development program and ensuring access to attractive markets for our products,” said Brian Feed, Apache’s senior vice president, Midstream and Marketing.
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. Our services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and import and export terminals; crude oil gathering, transportation, storage and terminals; petrochemical and refined products transportation, storage and terminals; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems. The partnership’s assets include approximately 49,000 miles of pipelines; 250 million barrels of storage capacity for NGLs, crude oil, refined products and petrochemicals; and 14 billion cubic feet of natural gas storage capacity.
Apache Corporation is an oil and gas exploration and production company with operations in the United States, Egypt and the United Kingdom. Apache posts announcements, updates, investor information and all recent press releases on its website, www.apachecorp.com.
This press release includes forward-looking statements. Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve certain risks and uncertainties, such as Enterprise’s and Apache’s expectations regarding future results, capital expenditures, project completions, liquidity and financial market conditions. These risks and uncertainties include, among other things, insufficient cash from operations, adverse market conditions, governmental regulations and other factors discussed in Enterprise’s and Apache’s filings with the U.S. Securities and Exchange Commission. If any of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. Enterprise and Apache disclaim any intention or obligation to update publicly or reverse such statements, whether as a result of new information, future events or otherwise.
Randy Burkhalter, (713) 381-6812 or (866) 230-0745
Rick Rainey, (713) 381-3635
Castlen Kennedy, (713) 296-7189
Gary Clark, (281) 302-2286