August 6, 2008
Enterprise Completes Purchase of Remaining Interest in Dixie Pipeline Company and Dixie Terminals and Storage Company
Enterprise Products Partners L.P. (NYSE:EPD) today announced that its Enterprise Products Operating LLC subsidiary has acquired the remaining 25.8 percent interest in Dixie Pipeline Company and Dixie Terminals and Storage Company ("Dixie") from BP. With this transaction, Enterprise now owns 100 percent of Dixie, which includes a 1,300-mile pipeline system ranging in size from six inches to 12 inches in diameter that delivers propane to seven states throughout the Gulf Coast and southeastern United States. Enterprise acquired its initial 12.5 percent interest in Dixie in September 1999.
"Increasing our ownership of Dixie has been an ongoing strategic goal for Enterprise," said Michael A. Creel, Enterprise president and chief executive officer. "As sole owner of Dixie, our focus will be on pursuing initiatives designed to increase utilization of the system and promote growth opportunities for the partnership and our investors."
"The transaction will have no impact on the Dixie employees who have contributed greatly to the success of the company and whose experience and expertise will be vital to maintaining the standard of excellence that our customers have come to expect," said Creel.
The Pipeline Company currently has the capability to transport in excess of 160,000 barrels per day. The Terminals and Storage Company assets are comprised of eight terminal locations with approximately 660,000 barrels of storage capacity. In addition, the pipeline serves other third-party terminals, storage facilities and delivery locations.
Enterprise Products Partners L.P. is one of the largest publicly traded partnerships with an enterprise value of approximately $21 billion, and is a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil and petrochemicals. Enterprise transports natural gas, NGLs, crude oil and petrochemical products through approximately 35,000 miles of onshore and offshore pipelines. Services include natural gas gathering, processing, transportation and storage; NGL fractionation (or separation), transportation, storage and import and export terminaling; crude oil transportation; offshore production platform services; and petrochemical transportation and services. For more information, visit Enterprise on the web at www.epplp.com. Enterprise Products Partners L.P. is managed by its general partner, Enterprise Products GP, LLC, which is wholly-owned by Enterprise GP Holdings L.P. (NYSE:EPE). For more information on Enterprise GP Holdings, visit its website at www.enterprisegp.com.
This news release includes forward-looking statements. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties, such as the partnership's expectations regarding the operations of Dixie. These risks and uncertainties include, among other things, insufficient cash from operations, market conditions, governmental regulations and factors discussed in Enterprise Products Partners L.P.'s filings with the Securities and Exchange Commission. If any of these risks or uncertainties materializes, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. The partnership disclaims any intention or obligation to update publicly or reverse such statements, whether as a result of new information, future events or otherwise.