Enterprise buys Midland basin gas gathering from Occidental

Enterprise Products Partners (EPP) LP has agreed to acquire a natural gas gathering affiliate of Occidental Petroleum Corp. and to provide Occidental with natural gas gathering and processing services. The agreements include a long-term dedication of about 73,000 acres across four counties in Midland basin.

Enterprise will buy Occidental’s affiliate for $580 million cash. Assets include about 200 miles of natural gas gathering pipelines that support Occidental’s Midland basin production, with access to more than 1,000 drillable sites.

EPP plans to expand its Midland basin capacity by building the 300-MMcfd Athena gas processing plant, which will extract as much as 40,000 b/d of NGL. Athena is expected to begin service fourth-quarter 2026, boosting Enterprise’s Midland basin capacities to 2.2 bcfd and 310,000 b/d.

Investments in the Athena plant and expansion of Enterprise’s Midland basin gathering system were included in the company’s second-quarter 2025 estimate of growth capital expenditures of $4.0-4.5 billion for 2025 and $2.2-2.5 billion for 2026 (OGJ Online, July 28, 2025).

Acquisition of Occidental’s Midland basin natural gas gathering affiliate is subject to customary regulatory approvals. The deal is expected to close third-quarter 2025.