Reliance Industries Ltd.

Reliance Industries (RIL) - subsidiary - Reliance Holding USA, Inc., has inked definitive agreements for the sale of its entire holding of 49.9% interest in EFS Midstream LLC (EFS) to an affiliate of Enterprise Products Partners L.P. (Enterprise) for a total consideration of approximately $1,073 million.

Under the terms of the definitive agreements, Enterprise will pay Reliance approximately $574 million in cash at closing and make the final payment of $499 million in cash on or before the first anniversary of the closing date. The proposed transaction is subject to regulatory approvals and other closing conditions that are customary for similar transactions.

EFS is jointly owned by an affiliate of Reliance and an affiliate of Pioneer Natural Resources Company (Pioneer), with their respective ownership interests being 49.9% and 50.1%. EFS provide gathering, treating and compression services and condensate stabilization operations in the Eagle Ford Shale for the Reliance-Pioneer Upstream Joint Development and to third parties.

Since inception in 2010, EFS has built significant midstream infrastructure, which now comprises 10 central gathering points, 460 miles of gathering pipelines, 119 Mboepd of condensate stabilization capacity and 780 MMcfd of natural gas treating capacity.

Reliance’s agreement to sell its interest in EFS is part of a joint transaction, wherein both Reliance and Pioneer have agreed to sell their entire respective holdings in EFS, for an aggregate consideration of $2,150 million. In addition to the aggregate acquisition consideration being paid to Reliance and Pioneer proportionate to their respective ownership interests in EFS, Enterprise has agreed to spend $270 million over the next ten years on new facilities, connections and expansion projects.