Jim Hunt has clear goals to grow Regency Energy Partners into a major midstream energy company and with the financial backing of GE Energy Financial Services (GEEFS) he is confident the goals will be achieved.

In an interview last week with Gas Processors Report, Hunt, the chairman, president and CEO of Dallas-based Regency stressed that it is GEEFS’s stated objective for Regency to grow and because of the size of opportunities it could be dramatic growth. There is no formal plan or a set range for percentage growth, but GEEFS clearly wants to invest in energy infrastructure and use Regency as it engine for midstream sector growth.

“Their investment in Regency is their first investment in an operating company that gives them a platform for growth in the midstream sector so while I can’t quantify that for you, I would say it’s going to be pretty exciting around here for us and for our management team,” Hunt told Gas Processors Report.

In fact, when asked if he sees the day where Regency would be as big as No. 1 Enterprise Products Partners, he replied, “that’s kind of a worthy goal.”

“We have the advantage because of our size we can move the needle pretty easy,” he explained. “It’s a lot easier to grow on a percentage basis a smaller company than a large one. The one thing I wouldn’t envy about Dan Duncan and the Enterprise team is how much it takes in fact to show a significant move because they are so large.”

Regency is enjoying growth from assets that are so small Enterprise wouldn’t be interested in them which Hunt sees as a key advantage for the company he leads. “We want to go ahead and grow up. We’re a young company. We’ve had dramatic growth having created in two years over $1 billion in value for our unit holders. We’re not here to be caretakers.”

And now with the financial backing of GEEFS, Hunt is optimistic Regency’s growth objectives will be achieved.

“When you’re in discussions with a party about an acquisition or a transaction whether it’s a joint venture or an acquisition, probably the most important thing to that party besides the price is certainty of close,” he said. “When we go into a room with GE behind us, nobody’s worried about certainty of close.”

Hunt reiterated than organic growth will remain the focus.

“From the beginning, prior to us taking Regency public and when we went out with our IPO in 2006, we talked about organic growth being our main focus. I think it’s not wise for a company to plan its future and its growth on successful acquisitions for a couple of reasons: one it’s beyond control and it gets to be competitive when prices are at a multiple significantly higher thane organic growth prospects.”

Regency strives to have a good inventory of organic growth prospects that can be executed on year after year. If an acquisition opportunity presents itself, Regency would be interested if it is additive. “I think you have to have a good balance for both organic growth and the appetite for acquisitions if you get them but it never makes sense to over pay for something.”

Regency has not been that visible in the active auction process. “We look at everything but we put an assessment at what we’re prepared to pay, and we’re constantly not surprised but constantly reminded that others are willing to pay more,” he said.

Some companies are willing to pay more because of a unique set of synergies that the expensive acquisition will bring them. Other times, financial players are willing to pay more because they know they must pay up to gain a foothold in an area.

Hunt said Regency would like to expand in the Rockies but he is less interested in the Barnett Shale because the growth opportunities there are small. He stresses that Regency is looking at opportunities in the Rockies but the opportunities must provide critical mass. But still, many of the properties available are just too pricey for Regency’s taste.

“There are properties that are being auctioned there or that are being sold that quite frankly, we are not prepared to pay that kind of price so there may be other ways we could get into the area.”

Regency also remains very interested in south Texas. Hunt explains that the $350 million TexStar acquisition last August set up a number of organic prospects for the partnership. The majority of Regency’s organic growth this year has been spun off the TexStar acquisition. “There’s a lot more to be done in south Texas,” Hunt said. “It’s an area we like. We’re seeing more drilling down there all driven by demand for gas. We still have a lot to invest in infrastructure if we’re going to get this country up to a 26 or 27 TCF market for gas.”

Hunt sees both LNG and storage as possible growth engines for Regency. He sees the partnership with GEEFS as a way to make these and other expansion prospects a reality.

“LNG is not that far off from our knitting that we would ignore it. We like to stick to our knitting; our knitting is a service company and we look to anything that we can do to provide a service to our customers,” he said.

Regency has not been involved in storage, but the GEEFS partnership could change that as it broadens Regency’s perspective. “It makes us think bigger here because we have a sponsor now in GE that has a lot of money and a lot of foresight and a lot of expertise. And we’re enjoying that.”

Jim Hunt is a seasoned energy executive with nearly 40 years of experience in operational and financial leadership positions. In addition to leading several public companies, Hunt has been responsible for numerous mergers, acquisitions and financings in the energy sector.

Hunt joined Regency as president and CEO in December 2004 and was elected chairman in November 2005. He led the company’s IPO shortly thereafter in February 2006.

A 15-year energy-investment banking veteran, Hunt most recently served as head of the U.S. Energy Group fro UBS Investment Bank. Prior to that, he led the Houston office of Lehman Brothers Inc.

Hunt was president and CEO of two NYSE-listed companies: Cenergy Corp. and Diamond M Co., the predecessor of Diamond Offshore Co. He is an attorney and a member of the State Bar of Texas.