BG, Exco sell equal TGGT holdings to Azure Midstream

BG Group PLC and Exco Resources Inc., Dallas, have entered into definitive agreements to sell their equal equity holdings in TGGT Holdings LLC to Azure Midstream Holdings LLC.

BG Group PLC and Exco Resources Inc., Dallas, have entered into definitive agreements to sell their equal equity holdings in TGGT Holdings LLC to Azure Midstream Holdings LLC.

BG Group and Exco Operating Co. LP, a wholly owned subsidiary of Exco Resources, will offload their combined 100% equity interest in TGGT for an aggregate sales price of $910 million, of which $875 million will be in cash and the remaining portion will be in the form of an 8% equity interest in Azure to be split equally between Exco and BG Group.

Exco expects to receive net cash proceeds of $230 million after TGGT pays off its credit agreement and net of transaction costs and closing adjustments. Cash proceeds will be used to reduce the asset sale tranche under Exco’s credit agreement. The deal is expected to close in the fourth quarter.

TGGT is a 50-50 joint venture company that owns and operates natural gas gathering and treating assets in three main systems focused on production from the Haynesville, Bossier, and Cotton Valley shale gas formations across East Texas and North Louisiana.

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