Regency Energy Holdings has agreed to acquire Nexus Gas Holdings for $85
million, Dallas-based midstream partnership Regency said Monday.
The planned acquisition would expand Regency's reach in Louisiana and East Texas, it said.
Nexus is a midstream provider of natural gas gathering, dehydration and
compression services for producers in DeSoto Parish, Louisiana, and Shelby
County, Texas. Its gathering system comprises 80 miles of low- and
high-pressure gathering pipelines and is currently gathering more than 110,000
Mcf/d from about 500 wells.
With the acquisition, Regency also would acquire for $53 million Nexus'deal to buy 136 miles of pipeline from Southern Natural Gas, an affiliate of El Paso Corp. Before Regency can buy the pipeline from Southern Natural, the US Federal Energy Regulatory Commission must approve the abandonment and certain closing conditions must be met. If the transaction closes under the currently anticipated conditions, Regency will buy the 136 miles of pipeline from Southern Natural and make an additional payment to Nexus.
The acquisition is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. Closing is expected to occur in late first quarter or early second quarter. The purchase price also is subject to customary closing date and post-closing adjustments.
The deal will be funded using borrowings under Regency's revolving credit
facility, Regency said.
million, Dallas-based midstream partnership Regency said Monday.
The planned acquisition would expand Regency's reach in Louisiana and East Texas, it said.
Nexus is a midstream provider of natural gas gathering, dehydration and
compression services for producers in DeSoto Parish, Louisiana, and Shelby
County, Texas. Its gathering system comprises 80 miles of low- and
high-pressure gathering pipelines and is currently gathering more than 110,000
Mcf/d from about 500 wells.
With the acquisition, Regency also would acquire for $53 million Nexus'deal to buy 136 miles of pipeline from Southern Natural Gas, an affiliate of El Paso Corp. Before Regency can buy the pipeline from Southern Natural, the US Federal Energy Regulatory Commission must approve the abandonment and certain closing conditions must be met. If the transaction closes under the currently anticipated conditions, Regency will buy the 136 miles of pipeline from Southern Natural and make an additional payment to Nexus.
The acquisition is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. Closing is expected to occur in late first quarter or early second quarter. The purchase price also is subject to customary closing date and post-closing adjustments.
The deal will be funded using borrowings under Regency's revolving credit
facility, Regency said.
