A new player enters the Haynesville Shale business. 

Enterprise Products to Buy Natural-Gas Assets in $1.2 Billion Deal

By TESS STYNES

Enterprise Products Partners LP agreed to purchase natural-gas assets in Louisiana and Texas from M2 Midstream LLC for about $1.2 billion as the pipeline company continues to make acquisitions.

The deal comes as the pipeline sector and natural-gas industry as a whole have seen earnings cramped by a drop in commodity prices and tightened credit markets. However, the sector has experienced growth in merger activity amid a race to tap natural gas from shale formations.

Enterprise is acquiring two natural-gas gathering and treating systems, which President and Chief Executive Michael Creel said will help accelerate the company's entry into the Haynesville/Bossier shale region of Texas and Louisiana.

The deal is expected to add to distributable cash flow in the second half.

Enterprise recently completed a $3.3 billion merger with Teppco Partners LP to create one of the country's biggest pipeline companies. Enterprise plans to expand its crude-oil and refined-products business as a result of the deal.