Enterprise Products Partners’ affiliates have executed an agreement to acquire a natural gas-gathering affiliate from Occidental.
The acquisition includes a long-term dedication of approximately 73,000 acres across four counties in the Midland Basin, with assets comprising around 200 miles (321.8km) of natural gas-gathering pipelines.
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The pipelines support Occidental’s production activities and offer Enterprise more than 1,000 drillable locations, providing long-term development visibility and an immediate expansion of its natural gas-gathering footprint.
The $580m debt-free cash deal will also see Enterprise Products build the new Athena natural gas processing plant, enhancing its processing capacity in the region.
The Athena plant, which is expected to start service in the fourth quarter of 2026 (Q4 2026), will have the capacity to process 300 million cubic feet per day (mcf/d) of natural gas and extract up to 40,000 barrels per day (bpd) of natural gas liquids (NGLs).
Upon completion, Enterprise’s Midland Basin assets will be capable of processing 2.2 billion cubic feet per day of natural gas and extracting 310,000bpd of NGLs.
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By GlobalDataEnterprise’s general partner co-CEO A.J. Teague said: “These agreements with Occidental are consistent with Enterprise’s focus on expanding our Midland Basin franchise through organic investments in our midstream network and through targeted acquisitions that bolt-on to our existing infrastructure.
“To accommodate production growth in this area of the basin, Enterprise will build its ninth Midland Basin natural gas processing plant and expand its natural gas-gathering system. The Permian Basin is responsible for approximately 90% of domestic liquid hydrocarbons growth and our continued investment in natural gas processing infrastructure supports Enterprise’s producer customers and brings additional volume into the company’s integrated natural gas liquids value chain.”
The strategic investments in the Athena plant and expansions of Enterprise’s Midland Basin gathering system are part of the company’s estimated growth capital expenditures of $4bn–4.5bn for 2025 and $2.2bn–2.5bn for 2026.
The deal is subject to customary regulatory approvals and is expected to close in Q3 2025.
In February 2025, Occidental also agreed to divest certain upstream assets for a combined value of $1.2bn.
These assets included non-operated assets in the Rockies and select Permian Basin assets not included in Occidental’s immediate development plans.
