Aug 21 (Reuters) - Pipeline operator Enterprise Products

Partners ( EPD ) said on Wednesday it will buy smaller peer

Pinon Midstream for $950 million in cash.

The oil and gas pipeline industry has seen increased

consolidation since last year as U.S. production grows and as

problems with permits for new pipelines have made existing

operators more valuable.

Pinon, a portfolio company of Black Bay Energy Capital,

operates in the Delaware Basin in New Mexico and Texas.

Enterprise Products ( EPD ) said the deal is expected to close in

the fourth quarter of 2024.