Business Combinations

12 Months Ended

Dec. 31, 2020

Note 12. Business Combinations

Acquisition of Delaware Processing

In March 2018, we acquired the remaining 50% member interest in our former Delaware Processing joint venture for $151 million in cash, net of $3.9 million of cash held by the venture. As a result, Delaware Processing became a wholly-owned consolidated subsidiary of ours. Delaware Processing owns a cryogenic natural gas processing facility having a capacity of 150 million cubic feet per day (“MMcf/d”). The facility, which is located in Reeves County, Texas and entered service in August 2016, serves producers in the Delaware Basin in West Texas and southern New Mexico.

The following table presents the final fair value allocation of assets acquired and liabilities assumed in the Delaware Processing acquisition.

Purchase price for remaining 50% equity interest in Delaware Processing	$	154.5
Fair value of our 50% equity interest in Delaware Processing held before the acquisition		146.4
Total	$	300.9
Recognized amounts of identifiable assets acquired and liabilities assumed:
Assets acquired in business combination:
Current assets, including cash of $3.9 million	$	10.8
Property, plant and equipment		200.0
Contract-based intangible assets		82.6
Customer relationship intangible assets		9.9
Total assets acquired	$	303.3
Liabilities assumed in business combination:
Current liabilities	$	(1.8	)
Long-term liabilities		(0.6	)
Total liabilities assumed	$	(2.4	)
Total identifiable net assets	$	300.9
Goodwill	$	–

Prior to this acquisition, we accounted for our investment using the equity method. On a historical pro forma basis, our consolidated revenues, costs and expenses, operating income, net income attributable to Enterprise Products Partners L.P. and earnings per unit amounts for the year ended December 31, 2018 would not have differed materially from those we reported had the acquisition been completed on January 1, 2018 rather than March 29, 2018.

At March 29, 2018, our 50% equity investment in Delaware Processing was recorded at $107.0 million. Upon acquisition of the remaining 50% member interest, our existing equity investment was remeasured to fair value resulting in the recognition of a non-cash $39.4 million gain, which is presented within “Other income (expense)” on our Consolidated Statement of Operations for the year ended December 31, 2018.

The results for this business are reported under the NGL Pipelines & Services business segment.