Regency Energy Expands Into Texas with $1 Billion Pipeline Deal
Regency Energy Partners LP (RGP), a pipeline owner controlled by Energy Transfer Equity LP (ETE), agreed to buy two pipeline units for about $1 billion to expand in Texas, where crude production has surged.
Regency will acquire the midstream assets of Eagle Rock Energy Partners LP (EROC) for $200 million in stock and $520 million in cash, according to a statement today. Separately, Regency said it would pay $290 million for assets belonging to closely held Hoover Energy Partners LP.
Regency is extending its operations in Texas, where crude oil production has more than doubled since 2009 as companies apply shale-drilling techniques to previously overlooked deposits. Accompanying the oil are natural gas and related liquids that need to be processed by so-called midstream operations.