Regency Energy Partners announced July 15 that it has sold its east Texas gathering and processing assets to an affiliate of Tristream Energy LLC for approximately $70 million.
“The sale of Regency’s east Texas assets allows us to place greater focus on the expansion of core assets within higher-growth regions, including several of the major shale plays,” said Byron Kelley, president and chief executive officer of Regency. “This transaction will be immediately accretive to unitholders, and we expect it to positively impact our credit metrics by improving our fee-based business mix.”
The assets sold include approximately 371 miles of gathering pipeline, approximately 20,000 compression horsepower, a condensate sweetening plant in Myrtle Springs, Texas, and gas treating and processing facilities in Eustace, Texas. Also included in the sale are two idle processing facilities and an idle fractionation tower.