23:30 | 01.02.2011
Enterprise Products Strengthens Focus on Core Marine Business with Sale of Assets
Enterprise Products Partners L.P. (NYSE: EPD) announced today that its
subsidiary, Enterprise Marine Services LLC, has entered into an
agreement to sell its bunker fuel transportation operations to
Houston-based Kirby Corporation for $53.2 million. Included in the
transaction are 21 tank barges and 15 towboats that deliver engine fuel
to cruise ships, container vessels and freighters at ports primarily in
South Florida, as well as other locations in Mobile, Alabama and
Houston. The sale is expected to close later this month.
“The divestiture of these assets will allow us to focus our efforts on
the core areas of our marine services business that are more closely
aligned with the partnership’s integrated value chain and support the
partnership’s marketing activities, specifically the transportation of
refined products, liquefied petroleum gas, crude oil and
petrochemicals,” said G.R. “Jerry” Cardillo, president of Enterprise
Marine Services LLC. “We remain committed to the future of our marine
services business, as reflected by the partnership’s commitment to
building seven new marine vessels and associated equipment, some of
which are already under construction.”
The new additions to the Enterprise fleet, which are expected to be in
service by November 2011, include three 30,000-barrel, double-hulled
liquid transport barges and four 2,800-horsepower tugboats. The new
equipment will help modernize the partnership’s fleet which will feature
131 barges and 63 towboats.
Enterprise Products Partners L.P. is the largest publicly traded
partnership and a leading North American provider of midstream energy
services to producers and consumers of natural gas, NGLs, crude oil,
refined products and petrochemicals. EPD’s assets include approximately:
49,100 miles of onshore and offshore pipelines; 195 million barrels of
storage capacity for NGLs, refined products and crude oil; and 27
billion cubic feet of natural gas storage capacity. Services include:
natural gas transportation, gathering, processing and storage; NGL
fractionation, transportation, storage, and import and export
terminaling; crude oil and refined products storage, transportation and
terminaling; offshore production platform; petrochemical transportation
and storage; and a marine transportation business that operates
primarily on the United States inland and Intracoastal Waterway systems
and in the Gulf of Mexico.
This press release includes “forward-looking statements” as defined
by the Securities and Exchange Commission. All statements, other than
statements of historical fact, included herein that address activities,
events, developments or transactions that EPD expects, believes or
anticipates will or may occur in the future, including anticipated
benefits and other aspects of such activities, events, developments or
transactions, are forward-looking statements.These
forward-looking statements are subject to risks and uncertainties that
may cause actual results to differ materially, including required
approvals by regulatory agencies, the possibility that the anticipated
benefits from such activities, events, developments or transactions
cannot be fully realized, the possibility that costs or difficulties
related thereto will be greater than expected, the impact of competition
and other risk factors included in the reports filed with the Securities
and Exchange Commission by EPD.Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak
only as of their dates.Except as required by law, EPD does not
intend to update or revise its forward-looking statements, whether as a
result of new information, future events or otherwise.
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