By OGJ editors
HOUSTON, May 22 -- Cantera Resources Inc., Dallas, has agreed to buy CMS Field Services, a subsidiary of CMS Energy Corp., Dearborn, Mich., for $115.5 million cash.
The deal also includes a $50 million note payable during 2004-08, contingent on the financial performance of the Fort Union and Bighorn natural gas gathering systems in Wyoming.
The sale is expected to close during the second quarter. The sale proceeds will be used to reduce debt.
CMS Field Services provides gathering, compression, treating, and processing services for natural gas and natural gas liquids. It has facilities in Oklahoma, Texas, Louisiana, and Wyoming.
CMS Energy retains ownership of CMS Taurus Field Services LP, owner of the Shackelford processing plant in Callahan County, Tex., and the associated gathering system. CMS Energy said it plans to sell CMS Taurus Field Services soon.
Cantera Resources, a Morgan Stanley Capital Partners portfolio company, owns six facilities and more than 2,000 miles of pipelines in Texas that provide gathering, compression, treating, processing, and marketing for natural gas and natural gas liquids.
