Enterprise Products Partners
has reportedly agreed to buy
GulfTerra Energy Partners
for about $5 billion.
The cash-and-stock deal will enable GulfTerra's biggest shareholder,
El Paso Corp
, to raise cash as it continues to cut debt, according to a report Sunday by
As part of the deal, Houston-based Enterprise will also assume GulfTerra's debt in acquiring its ownership or interest in natural gas pipelines, offshore oil lines, processing plants and storage facilities.
El Paso is scheduled to present its long-term business plan Monday at 8:30 a.m EST, at which time the deal is expected to be announced.
On Friday, Enterprise shares lost 30 cents, or 1.3%, to $22.80; GulfTerra shares rose 22 cents, or 0.5%, to $40.39; and El Paso shares fell 5 cents, or 0.7%, to $6.74.