Easton Energy Enters Agreement to Sell its Gulf Coast Liquids Pipeline System
Easton Energy (Easton), a Houston-based midstream company, announced today that it has entered into an agreement to sell its Gulf Coast Liquids Pipeline System to ONEOK, Inc. (NYSE:OKE) for approximately $280 million, subject to customary price adjustments. 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 U.S. Gulf Coast NGL and hydrocarbon value chain," said G.R. "Jerry" Cardillo, Easton's Chief Executive Officer. "This transaction recognizes 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 that manages over $1.6 billion of capital.
"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 expects to close the transaction mid-year 2024. Closing is subject to customary conditions including termination or expiration of the waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act.
About Easton Energy
Easton Energy LLC is a Houston-based midstream company focused on developing infrastructure assets that support the transportation, storage, and processing of natural gas liquids (NGL), refined products, and petrochemicals. Easton's primary assets include liquid hydrocarbon salt cavern storage facilities at Markham, Texas, and approximately 455 miles of product distribution pipelines that connect key product markets along the Texas and Louisiana Gulf Coast. For more information, please visit eastonenergy.com.
About Cresta Fund Management
Cresta Fund Management (Cresta) is a Dallas-based private equity firm providing growth equity for sustainable and conventional energy infrastructure solutions for the industrial, logistics and agricultural sectors. With approximately $1.6 billion of assets under management, Cresta is led by a strong, operations-focused team with decades of experience in the energy and infrastructure industries. For more information, please visit crestafunds.com.
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