Easton Energy has entered into an agreement to sell its Gulf Coast Liquids Pipeline System to ONEOK for approximately $280 million (€257 million).
Easton will retain, and continue operating, its natural gas liquids (NGL) and olefins storage business located in Markham, Texas.
The system included in the transaction is comprised of approximately 450 miles of NGL and hydrocarbon pipelines located throughout the Texas and Louisiana Gulf Coast midstream corridors for NGL and olefin service.
“These pipelines are a critical piece of the US Gulf Coast NGL and hydrocarbon value chain,” said GR “Jerry” Cardillo, Easton’s chief executive officer.
“This transaction recognises value for our customers, shareholders, and our business partners. We will now pivot our focus to our remaining business, our NGL and olefins storage business.”
Easton is a portfolio company of Cresta Fund Management (Cresta), a Dallas-based private equity fund.
“This transaction confirms the potential Cresta saw in these pipelines when we acquired them in 2018,” said Chris Rozzell, Cresta’s managing partner.
“We are enthusiastic about Easton’s sharpened focus on its storage business and are excited about its ability to provide services to a variety of different NGL customers.”
Easton’s salt dome storage infrastructure is located between key NGL and petrochemical markets in Mont Belvieu and Corpus Christi, Texas. This infrastructure includes brine handling facilities and multiple salt dome wells with approximately 40 million barrels of NGL and olefins storage capacity.
Easton Energy to sell its pipeline system
