- Enterprise Products Partners (NYSE:EPD +2.3%) and Occidental Petroleum (OXY +0.3%) say they will team up to build a 150M cf/day cryogenic natural gas processing plant to handle growing production in the Delaware Basin.
- EPD, which will manage construction and operate the plant, says the new plant, combined with its recently announced 200M cf/day cryogenic plant being built in New Mexico, will increase its net gas processing capacity in the Permian basin to more than 600M cf/day.
- The companies say the plant is supported by long-term, firm delivery contracts, and will begin operations in mid-2016.
- The announcement accompanied EPD's Q1 results, as it brought $1.03B in cash flow that it is able to pass along to investors, vs. $1.09B in the same period last year; analysts say the company was left with ~$0.52 of distributable cash flow per unit.