ACQUISITIONS Deepwater Holdings Sample Clauses

ACQUISITIONS Deepwater Holdings. In June 1999, the Partnership acquired additional interests in the HIOS, East Breaks and UTOS systems through its acquisition of Natoco, Inc. and Naloco, Inc. for $51 million. As part of the transaction, the Partnership also assumed operations of the Stingray system, the Stingray Offshore separation facility and the West Cameron dehydration facility in November 1999. The purchase price exceeded the book value of net assets acquired by approximately $48 million. This excess cost is being amortized on a straight line basis over the estimated lives of the acquired assets, which approximates 30 years. In September 1999, the Partnership and ANR Pipeline Company, or ANR, formed Deepwater Holdings to reorganize their interests in certain joint ventures. In the transaction, the Partnership and ANR contributed their interests in certain pipeline systems and facilities to Deepwater Holdings. Following this reorganization, Deepwater Holdings owns 100 percent of the East Breaks, HIOS, UTOS, and Stingray systems, along with the West Cameron dehydration facility. In exchange for its contribution, the Partnership received a 59.66 percent interest in Deepwater Holdings. The Partnership subsequently sold a 9.66 percent members' interest in Deepwater Holdings to ANR for $26.1 million to effect a 50/50 ownership position. The Partnership realized a $10.1 million gain associated with the sale. In conjunction with the transaction, the Partnership will become the full operator of the UTOS, HIOS, and East Breaks systems no later than July 1, 2000. 39 EL PASO ENERGY PARTNERS, L.P. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) In connection with its formation, Deepwater Holdings established a $175 million credit facility to retire existing debt of Stingray and Western Gulf, the parent company of East Breaks and HIOS, to fund a one-time distribution of $20 million to each of the equity partners, to provide funds for the remaining construction costs of the East Breaks system and any future system expansions, and to provide for other working capital needs of Deepwater Holdings. The following selected unaudited pro forma information represents the Partnership's consolidated results of operations on a pro forma basis for the years ended December 31, 1999 and 1998, assuming the transactions relating to Deepwater Holdings discussed above had occurred on January 1, 1998: YEAR ENDED DECEMBER 31, ---------------------- 1999 1998 -------- -------- (IN THOUSANDS, ...