Acquired the midstream business including 800 miles of crude oil, natural gas and water gathering pipelines in the Delaware Basin.
Regency Energy Partners LP (NYSE: RGP) announced Feb. 3 that it closed its acquisition of Houston-based Hoover Energy Partners LP's midstream business for $290 million.
The acquisition further enhances Dallas-based Regency’s geographic footprint in the Delaware Basin in West Texas and expands its suite of producer services by adding crude and water gathering services in one of its core operating regions. In addition, the Hoover assets are already connected to Regency’s existing Permian Basin rich-gas gathering system which is expected to facilitate a quick integration.
Hoover’s midstream business include over 800 miles of crude oil, natural gas and water gathering pipelines, two treating plants and a processing plant in Ward, Reeves and Pecos counties in the southern portion of the Delaware Basin. The Perry Ranch Station is a major destination for crude gathered by a customer in the region and is backed by a 20-year dedication. In addition, Hoover’s Delaware Water System is the only open-access water gathering and disposal system in the Delaware Basin.
Regency issued some 4 million common units to Hoover and funded the cash portion of the consideration with borrowings under its revolving credit facility.