ESENTIA Energy Expands Pipeline Network with Strategic Acquisition

ESENTIA Energy Development, a prominent player in Mexico's energy sector, announced a strategic acquisition agreement to purchase Energía Occidente de México. The acquisition, valued at $400 million, encompasses the 313-km Guadalajara-Manzanillo natural gas pipeline system, linking Guadalajara to the Pacific port of Manzanillo. This move integrates with ESENTIA's current pipeline network, connecting the Permian Basin in Texas to Mexico's Pacific coast.

Post-acquisition, ESENTIA will hold a unique position as the sole private entity with such an expansive gas transportation system in the region. The company anticipates operational synergies, cost reductions, and enhanced commercial flexibility from this acquisition. Daniel Bustos, CEO of ESENTIA, emphasized the alignment of this acquisition with the company's strategy of enhancing their infrastructure through disciplined mergers and acquisitions.

The purchase is pending regulatory approvals and customary conditions. ESENTIA plans to finance the deal using existing liquidity and credit facilities, without increasing its gross debt.