El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Energy Partners Closes $284 Million Chaco, Deepwater Holdings Acquisitions
HOUSTON, TEXAS, October 18, 2001
El Paso Energy Partners, L.P. (NYSE:EPN) has completed its previously announced acquisitions of the Chaco facility and Deepwater Holdings L.L.C.
Chaco is a cryogenic natural gas processing facility located in northern New Mexico's San Juan Basin and is connected to El Paso Field Services' extensive natural gas gathering system. Constructed in 1995, Chaco is the third-largest natural gas processing plant in the United States with processing capacity of 700 thousand dekatherms per day and natural gas liquids (NGL) production capacity of 50,000 barrels per day. EPN purchased the Chaco plant from a consortium of financial institutions and retains an existing lease with El Paso Field Services, a business unit of El Paso Corporation (NYSE:EPG). In conjunction with the Chaco acquisition, EPN entered into a 20-year, fixed-rate tolling agreement to process natural gas for El Paso Field Services. The Chaco transactions are valued at $198.5 million.
Deepwater Holdings L.L.C. owns the High Island Offshore System, which serves the Outer Continental Shelf region of the western Gulf of Mexico and the East Breaks Gathering System, which serves the Deepwater trend of the western Gulf of Mexico region. Prior to the acquisition, EPN operated and held a 50-percent interest in Deepwater Holdings L.L.C. EPN acquired the remaining 50-percent interest from a subsidiary of El Paso Corporation and retired project debt associated with Deepwater Holdings for a total transaction value of $85 million.
El Paso Energy Partners, L.P. is a publicly owned master limited partnership. The partnership owns and operates a diversified set of midstream assets including five offshore natural gas and oil pipelines, six production handling platforms located in the Gulf of Mexico, a strategically located salt dome storage facility with 7.2 billion cubic feet of current storage capacity in Mississippi, a 450-mile coal bed methane gathering system in Alabama, more than 600 miles of natural gas liquids gathering and transportation pipelines, three fractionation plants located in south Texas, and a 700 Mdth/d cryogenic gas processing facility in the San Juan Basin of New Mexico. Visit El Paso Energy Partners on the Web at www.elpasopartners.com.