ETE to buy Southern Union in $7.9 billion deal

By OGJ editors
HOUSTON, June 17
-- In a move to create one of the largest consolidated natural gas pipeline companies in the US, Dallas-based Energy Transfer Equity LP (ETE) entered into a merger agreement with Southern Union Co. to acquire the Houston-based gas transportation, storage, and gathering company for $7.9 billion. The deal includes $3.7 billion of existing Southern Union debt.

The deal, which has been unanimously approved by the boards of both companies, will provide ETE with direct ownership of assets that are complementary to assets already owned and operated by ETE’s two master limited partnership subsidiaries, Energy Transfer Partners LP and Regency Energy Partners LP.

The combined footprint of ETE (together with ETP and REP) along with Southern Union will include more than 44,000 miles of gas pipelines and 30.7 bcfd of gas transportation capacity.

After the transaction closes, Southern Union will become a wholly owned ETE subsidiary. The deal is expected to close in first-quarter 2012.

Related Articles

OMV to ramp up drilling in lower Austria

04/08/2014 OMV AG reported it will drill as many as 24 wells this year along with 20 wells in 2015 and 2016, respectively, in the Weinviertel region of lower ...

Laclede Group to acquire Alagasco for $1.6 billion

04/08/2014 Laclede Group Inc., St. Louis, has entered into an agreement with Energen Corp. to acquire subsidiary Alabama Gas Corp. (Alagasco) for $1.6 billion...

OIES: US shale gas, tight-oil plays face financial woes

04/07/2014 Financial problems of operators in US shale gas and tight oil plays might hold production growth below current expectations, according to the autho...

Anadarko settles legacy claims against Kerr-McGee for $5.15 billion

04/07/2014 Anadarko Petroleum Corp. and subsidiaries it acquired when it bought Kerr-McGee Corp. in 2006 agreed to pay $5.15 billion to settle fraudulent conv...

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