This move is set to significantly bolster Enterprise's midstream infrastructure and support the region's burgeoning production growth.
Enterprise Products Partners L.P. announced on Thursday its definitive agreements to acquire a natural gas gathering affiliate of Occidental. The all-cash transaction, valued at $580 million, marks a significant expansion of Enterprise's operational footprint in the Midland Basin, a key component of the Permian Basin. This acquisition will immediately integrate approximately 200 miles of natural gas gathering pipelines that have been servicing Occidental’s production activities. The deal is backed by a long-term dedication of 73,000 acres, offering Enterprise access to over 1,000 drillable locations and providing long-term visibility into the area's development potential.
To complement this acquisition and accommodate the expected production growth, Enterprise is also embarking on a substantial organic investment: the construction of a new natural gas processing plant named Athena. This state-of-the-art facility is designed to process 300 million cubic feet of natural gas per day and extract up to 40,000 barrels per day (BPD) of natural gas liquids (NGLs). Athena is slated to begin operations in the fourth quarter of 2026. Upon its completion, Enterprise’s total processing capabilities in the Midland Basin will surge to 2.2 billion cubic feet per day of natural gas and 310,000 BPD of NGLs, underscoring the company's commitment to scaling its operations to meet market demand.
The financial commitments for these projects have been integrated into Enterprise's capital expenditure forecasts. The company estimates its growth capital expenditures to be between $4.0 billion and $4.5 billion for 2025, and $2.2 billion to $2.5 billion for 2026. This forward-looking investment strategy highlights the company's confidence in the sustained growth of the Permian Basin, which, as noted by A.J. Teague, co-chief executive officer of Enterprise's general partner, is responsible for approximately 90% of domestic liquid hydrocarbons growth.
Teague emphasized that these agreements are consistent with Enterprise's core strategy of expanding its Midland Basin franchise through a combination of organic investments and targeted, synergistic acquisitions. "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," Teague said.
The acquisition is currently awaiting customary regulatory approvals and is projected to be finalized in the third quarter of 2025. This deal, along with the development of the Athena plant, positions Enterprise Products Partners for continued growth and reinforces its critical role as a midstream provider in the dynamic Permian Basin.
