Genesis Energy, L.P. Sold Minority Equity Interest in its Cameron Highway Oil Pipeline System
Posted on 11/24/2021
Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis’ operations include offshore pipeline transportation, sodium minerals and sulfur services, marine transportation and onshore facilities and transportation. Genesis’ operations are primarily located in the Gulf Coast region of the United States, Wyoming and the Gulf of Mexico.
In October 2020, Genesis Energy acquired a 50% interest in Cameron Highway Oil Pipeline System (CHOPS) for US$ 330 million.
In October 2011, Genesis Energy acquired Marathon Oil’s Gulf of Mexico assets for US$ 205.8 million, which include (28% in Poseidon Oil Pipeline, 23% in Eugene Island, and 29% in Odyssey).
In July 2015, Genesis Energy purchased Enterprise’s Gulf of Mexico assets for US$ 1.5 billion, which include (50% in Cameron Highway Oil Pipeline System, 36% in Poseidon Oil Pipeline, and 50% in SEKCO).
In November 2021, Genesis Energy sold a 36% minority equity interest in Cameron Highway Oil Pipeline System given the pipeline a valuation of US$ 1.16 billion. Genesis Energy sold the stake for circa US$ 418 million. Genesis Energy now owns 64% of CHOPS and will remain operator of the pipeline. In conjunction with this announcement, Genesis has made the decision to fund the remaining capital required for its Granger expansion project over and above the minimum of US$ 250 million Genesis is required to draw from its asset level preferred security.
Citi served as financial advisor and Akin Gump Strauss Hauer & Feld LLP served as legal advisor to Genesis Energy in its latest deal on CHOPS.