Enterprise buys Navitas, gets foothold in the Permian Basin
February 18, 2022
Houston pipeline giant Enterprise Products Partners completed its previously announced acquisition of Navitas Midstream Partners for $3.25 billion, entering one of the most prolific parts of the Permian Basin.
The all-cash transaction, one of the largest acquisitions of a private natural gas gathering and processing business, will add about 1,750 miles of pipelines and more than 1 billion cubic feet of natural gas processing capacity to Enterprise in the core of the Midland Basin in the Permian, the nation’s most productive oil field. One in five land drilling rigs operating nationally are located in the Midland Basin, where more than 40 independent and publicly-traded producers are active.
The deal closes as companies look to pool resources and cut redundancies to weather the oil market’s boom and bust cycles. Oil executives expect more mergers and acquisitions in the Permian as increasingly volatile energy prices and growing uncertainty over the future of fossil fuels drive the industry to consolidate.