Midstream JV to spend nearly $2 billion for assets

By OGJ editors
HOUSTON, Mar. 23
-- Energy Transfer Partners LP and Regency Energy Partners LP, both of Dallas, have formed a joint venture to buy LDH Energy Asset Holdings LLC from Louis Dreyfus Highbridge Energy LLC for $1.925 billion.

LDH owns and operates NGL storage, fractionation, and transportation. The storage is mostly at Mont Belvieu, Tex. Its 1,066-mile, 144,000-b/d intrastate West Texas pipeline moves NGLs from the Permian basin through the Barnett shale production area and terminates at Mont Belvieu storage and fractionation. LDH also owns and operates 25,000-b/d fractionation and processing in Louisiana.

Acquisition of LDH will expand ETP’s and Regency’s assets, said the joint-company announcement today, adding an NGL platform with storage, transportation, and fractionation capabilities. Additionally, this acquisition will provide both ETP and Regency with additional consistent fee-based revenues.

At the sale’s closing, ETP will contribute $1.35 billion in exchange for a 70% interest in the joint venture, while Regency will contribute $578 million for a 30% interest. The acquisition will close in second quarter of this year.

The JV will be managed by a two-person board of directors, with ETP and Regency each appointing one director. ETP will operate the assets on behalf of the JV with existing LDH employees.

Mike Bradley, president and chief executive officer of Regency, said Louis Dreyfus will remain a customer of LDH.

ETP’s owner, Energy Transfer Equity, acquired 100% interest in Regency’s general partner in May 2010. Today, ETE owns the general partner of both ETP and Regency, both of which remain independent publicly traded partnerships.

Related Articles

Apache fracs Wolfcamp wells without fresh water in dry Barnhart project area

02/11/2014 At a site in drought-stricken West Texas, Apache Corp. has devised a system to hydraulically fracture wells in the prolific Wolfcamp shale without ...

Monumental innovations

02/10/2014 Oil production from the Permian basin in West Texas is once again on the rise. According to the January Drilling Productivity Report published by t...

PERMIAN Briefs

02/01/2014

Permian production competes on a world scale

12/13/2013

The Permian basin in West Texas has reentered the race to become the world's largest oil-producing region.

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected