EOTT Energy acquires hydrocarbon processing complex, other assets

EOTT Energy Partners, L.P. (Houston) announced today that it has acquired assets for an aggregate purchase price of approximately $120 million. The assets include a hydrocarbon processing complex in Morgan's Point, Texas, and a liquids pipeline grid system purchased from an affiliate of Enron Corp. EOTT also has acquired a natural gas liquids storage facility in Chambers County, Texas, previously operated by an Enron affiliate under a lease financing arrangement.

Concurrently, EOTT has entered into a 10-year tolling agreement for production from the processing complex, which is currently producing MTBE and isobutylene, and a 10-year storage and transportation agreement for the use of the storage and pipeline grid system. Both agreements are with an affiliate of Enron Corp., which retains all existing third party commodity, transportation and storage contracts associated with these facilities.

"This acquisition provides EOTT assets with an excellent operating history and an experienced workforce. Combined with the term agreements, the acquisition will provide accretive earnings and stable cash-flows without commodity market or price exposure," said Dana Gibbs, president and chief operating officer of EOTT Energy Corp., general partner of EOTT Energy Partners, L.P. "We estimate that this transaction will increase the company's EBITDA approximately $20 million on an annualized basis."

EOTT Energy Partners, L.P. is a major independent marketer and transporter of crude oil in North America. EOTT Energy Corp, a wholly owned subsidiary of Enron Corp., is the general partner of EOTT Energy Partners, L.P. with headquarters in Houston. EOTT's Internet address is www.eott.com.

For more information, contact Gina Taylor at 713-853-7681.

Source: EOTT Energy Partners, L.P.