(3) Acquisition

On January 7, 2016, ENLC and ENLK acquired a 16.1% and 83.9% voting interest, respectively, in EOGP for aggregate consideration of approximately $1.4 billion. Upon closing of the acquisition on January 7, 2016, the first installment of $1.02 billion for the acquisition was paid. The second and final installments, each equal to $250.0 million, were paid in January 2017 and January 2018, respectively.

The first installment of approximately $1.02 billion was funded by (a) approximately $783.6 million in cash paid by ENLK, which was primarily derived from the issuance of Series B Preferred Units, (b) 15,564,009 common units representing limited liability company interests in ENLC issued directly by ENLC and (c) approximately $22.2 million in cash paid by ENLC. The transaction was accounted for using the acquisition method.

The following table presents the considerations ENLC and ENLK paid and the fair value of the identified assets received and liabilities assumed at the acquisition date (in millions):



Consideration:
Cash	$	805.8
Issuance of ENLC common units	214.9
ENLK’s total installment payable, net of discount of $79.1 million	420.9
Total consideration	$	1,441.6

Purchase Price Allocation:
Assets acquired:
Current assets (including $12.8 million in cash)	$	23.0
Property and equipment	406.1
Intangibles	1,051.3
Liabilities assumed:
Current liabilities	(38.8		)
Total identifiable net assets	$	1,441.6

The fair value of assets acquired and liabilities assumed are based on inputs that are not observable in the market and thus represent Level 3 inputs. We recognized intangible assets related to customer relationships and determined their fair value using the income approach. The acquired intangible assets are amortized on a straight-line basis over the estimated customer life of approximately 15 years.

We incurred a total of $4.4 million of direct transaction costs for the year ended December 31, 2016. These costs are included in general and administrative costs in the accompanying consolidated statements of operations.

For the period from January 7, 2016 to December 31, 2016, we recognized $246.1 million of revenues and $34.1 million of net loss related to the assets acquired.