Kirkland & Ellis advised Denbury Inc. (NYSE: DEN) on the restructuring of its long-standing CO2 pipeline arrangements with Genesis Energy, L.P. (NYSE: GEL), covering the 183-mile Northeast Jackson Dome (NEJD) Pipeline system that runs south from Denbury’s Jackson Dome CO2 source field to near Donaldsonville, Louisiana, where it connects into Denbury’s Green Pipeline extending across south Louisiana and southeast Texas to near Houston, and the 86-mile Free State Pipeline which runs from Jackson Dome to Denbury’s oil fields in eastern Mississippi. Both the Free State Pipeline and the NEJD Pipeline system were conveyed to Denbury in exchange for: (a) a one-time payment by Denbury of $22.5 million to purchase the Free State Pipeline; and (b) settlement of the remaining amounts due to Genesis under the NEJD secured financing lease for $70 million, to be paid in four equal payments during 2021. Denbury plans to fund these payments with excess cash flow and borrowings under its bank credit facility.
Read Denbury’s press release
The Kirkland team was led by transactional partners Thomas Laughlin and R.J. Malenfant; and debt finance partners Will Bos and Arthur Lotz.