Howard Energy Partners Expands Gulf Coast Presence with Acquisition of EPIC Midstream Holdings’ Ethylene Pipeline
In a significant move to strengthen its operations and expand its infrastructure in the Gulf Coast region, Howard Energy Partners (HEP) announced the completion of its acquisition of EPIC Midstream Holdings’ ethylene pipeline. The transaction, which marks a key milestone in the company’s growth strategy, encompasses a 120-mile, 12-inch, bidirectional pipeline that plays a pivotal role in the transportation of ethylene—a vital petrochemical used in a wide array of products from plastics to antifreeze.
The newly acquired ethylene pipeline directly connects the Gulf Coast Growth Venture’s (GCGV) state-of-the-art petrochemical complex in Corpus Christi, Texas, to storage facilities in Markham, Texas, which are critical nodes in the region’s ethylene distribution network. This pipeline is essential for the seamless movement of ethylene and complements HEP’s growing presence in the Gulf Coast, a key area for energy infrastructure in North America.
A Strategic Acquisition for Growth and Synergy
Howard Energy Partners views the acquisition as a strategic step in further solidifying its position in the Gulf Coast while creating synergies with its existing operations. The ethylene pipeline will directly enhance the efficiency of HEP’s Javelina Plant, a crucial facility that plays a critical role in treating and fractionating natural gas liquids (NGLs) and olefins. Located near local refineries, Javelina extracts essential elements such as olefins, hydrogen, and natural gas liquids from the gas streams produced during refining processes. The acquisition therefore provides HEP with unique advantages in terms of integrated operations and market reach.
“This acquisition aligns perfectly with our long-term strategy of expanding Howard Energy Partners into a more diversified midstream company, underpinned by organic growth and strategic acquisitions,” said Mike Howard, Chairman and CEO of Howard Energy Partners. “By integrating the ethylene pipeline with our Javelina Plant, we will create a powerful synergy that enhances our ability to provide vital energy services across the region.”
Mike Howard also expressed his appreciation for the team’s efforts in executing the deal and highlighted the company’s ambition for continued growth in the years to come. “Our internal team’s efforts have been instrumental in making this acquisition possible. We look forward to continuing to grow and evolve in 2025 and beyond,” he added.
A Record Year for HEP: Growth Through M&A Activity
The acquisition of the ethylene pipeline is part of a broader trend of significant mergers and acquisitions (M&A) activity by Howard Energy Partners. This year alone, HEP has reached a milestone in its M&A activity, completing several substantial transactions totaling over $1.1 billion. This record level of deal activity signals the company’s aggressive growth strategy and its intent to expand its portfolio of energy infrastructure assets.
HEP’s growing network now spans over 1,500 miles of pipeline across the United States and Mexico, strengthening its presence in key energy markets. In addition, the company boasts nearly 1 billion cubic feet per day of cryogenic processing capacity, as well as almost 2.5 billion barrels of tank storage capacity. This robust infrastructure enables HEP to support a variety of Ethylene Pipeline energy services, from natural gas transportation and processing to NGL fractionation and storage.
The acquisition also positions HEP to meet the increasing global demand for energy. The company’s diverse portfolio, which includes assets in Texas, New Mexico, Oklahoma, Pennsylvania, and Mexico, allows it to capitalize on a broad array of opportunities across the energy value chain. As the world continues to grapple with evolving energy demands and the need for sustainable energy solutions, HEP’s strategic investments in infrastructure ensure that the company remains well-positioned to meet these challenges.
Legal Advisors: A Robust Legal Framework for the Deal
The acquisition was supported by a strong legal team from both parties. Kirkland & Ellis LLP served as legal advisors to EPIC Midstream Holdings, ensuring that the deal structure and terms were in line with both regulatory requirements and industry standards. On the side of Howard Ethylene Pipeline Energy Partners, Bracewell LLP and Sidley Austin LLP provided legal counsel, ensuring that the acquisition process adhered to all necessary protocols and facilitated a smooth transition of assets.
About Howard Energy Partners: A Leader in Energy Infrastructure
Headquartered in San Antonio, Texas, Howard Energy Partners has solidified its reputation as one of the nation’s largest and most diverse private energy infrastructure companies. With operations spanning across several key regions, including Texas, New Mexico, Pennsylvania, Oklahoma, and Mexico, the company plays a crucial role in the energy landscape.
HEP’s diversified midstream platform spans the natural gas and liquids value chains, positioning it as a key player in the supply and transportation of essential energy products. The company’s expansive portfolio includes pipelines, fractionation plants, storage facilities, and processing plants, all of which work together to meet the energy needs of customers across various industries, including petrochemicals, power generation, and industrial applications.
“Our company’s success lies in our ability to adapt to the ever-changing energy landscape and provide the infrastructure that supports a wide range of industries,” said Howard. “With the addition of the ethylene pipeline, we are well-positioned to continue our upward trajectory as a key player in North America’s energy sector.”
As global energy demand continues to rise, Howard Energy Ethylene Pipeline Partners is poised to take on even more significant projects and acquisitions, focusing on expanding its infrastructure and continuing to build long-term value for its stakeholders.
Looking Ahead: A Future of Expansion and Opportunity
As Howard Energy Partners looks toward 2025 and beyond, the company’s growth prospects are robust. With the successful integration of the ethylene pipeline and its continued push for strategic acquisitions, HEP is set to further expand its footprint in North America and continue delivering value to its investors, customers, and communities.
The ethylene pipeline acquisition is just one of many opportunities HEP has identified as it continues to grow. The company is actively evaluating other acquisition targets and organic growth opportunities that will expand its portfolio, provide synergies with existing assets, and support the energy needs of a rapidly evolving market.
Howard Energy Partners’ approach to growth is deeply rooted in its long-term vision for the energy sector. As part of its strategy, the company is also committed to sustainable practices, investing in energy infrastructure that promotes efficiency, reduces environmental impact, and supports the transition to a low-carbon economy.
“We are excited about the future and the role we will play in shaping the energy industry. As we continue to grow and evolve, we will focus on maintaining a balance between strategic acquisitions, organic growth, and sustainable practices,” Howard said. “We are committed to providing the infrastructure that will help meet the energy demands of the future while creating value for our stakeholders.”
With its strong growth trajectory, diverse portfolio, and commitment to sustainability, Howard Energy Partners is well-positioned to continue its leadership role in the energy sector, contributing to the evolution of energy infrastructure and meeting the demands of a global market.
