2010-08-10-2010-08-09-2010-09-01

Acquired Houston-based field services company and associated gathering and processing and compression segments.

Regency Energy Partners LP, Dallas, (Nasdaq: RGNC) has closed its acquisition of Houston-based field services company Zephyr Gas Services LP for $185 million.

Zephyr's assets align with Regency's gathering and processing and compression segments and are in high-growth areas, including the Haynesville and Eagle Ford shales. Zephyr also provides field services, including gas cooling, dehydration, JT plant leasing and sulfur treating services. Regency expects to integrate Zephyr's current management into the existing reporting structure of its contract compression segment.

This combination should enable Regency to better compete against key competitors in terms of product offerings and ability to bid turnkey projects.

Regency funded the deal with its revolving credit facility.

Regency president and chief executive Byron Kelley says, "We have been focusing our efforts on expanding our treating business since completing our strategic plan earlier this year and we were excited when the opportunity arose to pursue the ownership of Zephyr along with its experienced management team. This is a rare opportunity to acquire a fast growing and successful business that complements our current service offerings and brings another strong component to our midstream service portfolio."