Enterprise Products Partners L.P. (NYSE: EPD) (“EPD”) and Duncan Energy Partners L.P. (NYSE: DEP) (“DEP”) have announced that the merger of DEP with a subsidiary of EPD was completed today.
Under the terms of the merger agreement, DEP unitholders are entitled to receive 1.01 EPD common units for each DEP common unit owned at the effective time of the merger. Cash will be paid to DEP unitholders in accordance with the merger agreement in lieu of any fractional units they otherwise would have been entitled to receive. Based on the cash distributions paid in August 2011 by DEP and EPD, this will result in a 33 percent increase in cash distributions for the unitholders of DEP. The merger also results in DEP unitholders having ownership in a much larger and more diverse partnership as EPD had approximately $33 billion of consolidated total assets on June 30, 2011.
“Duncan Energy Partners is pleased to complete this merger,” stated W. Randall Fowler, president and chief executive officer of DEP. “Our voting unitholders overwhelmingly supported the merger with over 99.9 percent of the votes cast voting in favor of the merger.”
“The completion of this merger is a major event in the history of Enterprise Products Partners,” said Michael A. Creel, president and chief executive officer of the general partner of EPD. “In addition to being immediately accretive in terms of distributable cash flow per unit, this merger is the last step in simplifying EPD’s commercial and organizational structure. The combination of Enterprise’s efficient partnership structure, a lower cost of capital as a result of eliminating our general partner incentive distribution rights and our large integrated system of midstream assets provides us with an excellent foundation to continue to grow our partnership and the value of our partnership units.”
With the completion of the merger, DEP has merged into a wholly owned subsidiary of EPD. DEP’s common units, which had been trading on the NYSE under the ticker symbol DEP, will be delisted and no longer publicly traded as of the opening of the stock market on September 8, 2011. EPD’s common units will continue to be traded on the New York Stock Exchange under the ticker symbol “EPD”.