Duncan Energy Partners reports second quarter 2011 results

HOUSTON, Texas - Duncan Energy Partners L.P. (NYSE: DEP) on Aug. 9 announced its financial and operating results for the three and six months ended June 30, 2011.

Net income attributable to Duncan Energy Partners for the second quarter of 2011 was $22.5 million, or $0.39 per common unit on a fully diluted basis, compared to $23.3 million, or $0.40 per common unit on a fully diluted basis, for the second quarter of 2010.

Enterprise is in the midst of a planned $2.5 billion acquisition of Duncan, which the suitor's parent company had spun off in 2006 as a separate entity.

Enterprise Products makes $2.41 billion offer for Duncan Energy

HOUSTON, Texas - Enterprise Products Partners LP (NYSE: EPD) has offered to acquire Duncan Energy Partners LP (NYSE: DEP) in an all-unit deal valued at about $2.41 billion.

Such an acquisition would see the web of oil-and-gas pipeline and processing companies controlled by the family of late Texas billionaire Dan Duncan, who died last year, further consolidated.

Enterprise owns Duncan's general partner and about 58 percent of Duncan's common units. Late last year, Enterprise merged with Enterprise GP Holdings LP.

Duncan has "received Enterprise's merger proposal and will begin our review process," said William A. Bruckmann III, chairman of the audit, conflicts and governance committee of DEP’s general partner.

Enterprise's results have improved in recent quarters thanks to its $3.3 billion merger with Teppco Partners LP in late 2009, which created one of the U.S.'s biggest pipeline companies. Enterprise is increasing its focus on developing pipeline projects serving the Eagle Ford and Haynesville shale gas fields in Texas and Louisiana.

Advances in technology and increased investment have led to surging natural-gas supply as companies tap resources trapped in shale rock formations.

Earlier this month, Enterprise reported its fourth-quarter profit soared, helped by production growth in shale regions and increasing demand for natural-gas liquids. Duncan's earnings for the period rose 7.8 percent.

Enterprise units closed on Feb. 22 at $43.70, while Duncan finished at $32.56, compared with the $41.71 offer price. Then came the offer after the close of the market. On Feb .23, DEP closed at $39.57 a unit, up $7.01. EPD closed on Feb. 23 at $42.97, down $0.73.

Enterprise, Duncan Energy expanding Eagle Ford facilities

HOUSTON - Enterprise Products Partners L.P. (NYSE: EPD) and Duncan Energy Partners L.P. (NYSE: DEP) on May 12 announced an expansion initiative at their jointly-owned Shoup and Armstrong facilities in South Texas, which provide natural gas processing and natural gas liquids (NGLs) fractionation services.
The upgrades are part of a comprehensive plan to expand the partnerships' midstream infrastructure in South Texas to handle increasing natural gas production from the growing Eagle Ford Shale play.
"This project further demonstrates the value of our existing assets in South Texas, which serve as the foundation for our strategy of focusing on the efficient and creative use of capital to generate attractive returns from increasing activity and higher demand for midstream services in the Eagle Ford Shale," said Michael A. Creel, Enterprise president and chief executive officer. "These expansions will not only give us the flexibility to accommodate more volumes, but should also position us to capture additional value from the various physical qualities of the natural gas, particularly the high NGL content, that are characteristic of Eagle Ford Shale production."
At the Shoup facility, located in Nueces County, Texas, the focus is on modifying existing fractionation equipment, which would increase its capacity to 77,000 b/d. The work is expected to be completed in the second quarter of 2010.
Incremental volumes of NGLs to fill the additional capacity are expected to be supplied by six existing Enterprise natural gas plants currently feeding the Shoup facility. Production from these plants is expected to increase significantly over the next six months as the quantity and quality of the gas supplies increase.

Duncan, Enterprise Partners expanding Louisiana intrastate system

HOUSTON - Enterprise Products Partners and Duncan Energy Partners have announced plans to expand their Louisiana intrastate natural gas pipeline system.
The system, operated by Acadian Gas LLC, a joint venture of the Partners, is being extended into northwest Louisiana to bring gas from Haynesville Shale deposits to regional customers.
The Haynesville Extension will have a design capacity to deliver 1.4 billion cubic feet per day through a 249-mile pipeline connecting existing infrastructure to the affiliated Cypress gas pipeline. The expansion will provide producers in the Haynesville shale access to nine interstate pipelines - Florida Gas, Texas Eastern, Transco, Sonat, Columbia Gulf, Trunkline, ANR, Tennessee Gas.
Enterprise says the extension provides natural gas shippers advantages in terms of price while diversifying the gas sector in the south Louisiana market. For producers, the company said, the extension offers more options for transactions with their end users.
"The expansion of the Acadian system provides our partnership with another major foothold in a significant non-conventional natural gas producing area," said Michael A. Creel, president and chief executive officer of Enterprise.
The service date for the expansion is September 2011.
The Haynesville Extension will be able to transport 1.4 bcfd through 249 miles of 36-in. and 30-in. OD pipeline connecting to both Acadian’s system and its affiliated Cypress Gas Pipeline.

Enterprise, Duncan announce completion of Sherman Extension

Enterprise Products Partners L.P. and Duncan Energy Partners L.P. on March 23 announced that construction has been completed on the 174-mile Sherman Extension expansion of the Enterprise Texas Intrastate natural gas pipeline system which extends through the heart of the prolific Barnett Shale play of North Texas.
Current throughput on the Sherman Extension is approximately 360 million cubic feet per day (MMcf/d) and is expected to reach about 950 MMcf/d during April 2009, as the remainder of the system’s 48,000 horsepower of compression is brought on line.
The 36-inch diameter pipeline originates at a delivery point on the partnerships’ Texas Intrastate natural gas pipeline system near Morgan Mill, Texas, southwest of Fort Worth, and extends northward to an interconnect with Boardwalk Pipeline Partners L.P.’s Gulf Crossing pipeline near Sherman, Texas.
The completion of the Sherman Extension adds 1.1 billion cubic feet per day (Bcf/d) of incremental takeaway capacity from the region, while providing producers in the Barnett Shale and as far away as the Waha area of West Texas with greater flexibility to reach the most attractive markets, particularly those in the Northeast and Southeast areas of the country.
Current natural gas production from the Barnett Shale is approximately four Bcf/d and is projected to surpass six Bcf/d by 2011.