Regency Energy Partners LP has completed its previously announced acquisition of Nexus Gas Holdings, LLC, a midstream provider of natural gas gathering, dehydration and compression services. The transaction is valued at approximately $85 million, excluding customary adjustments based on working capital, and will be immediately accretive to Regency unitholders.
"Regency is pleased to have closed the Nexus acquisition, which will expand our reach in one of the most prolific areas of North Louisiana and East Texas," said James W. Hunt, chairman, president and chief executive officer of Regency.
With this acquisition, Regency has also acquired Nexus' agreement to purchase 136 miles of pipeline from Southern Natural Gas Company (SNG). Before Regency can purchase the pipeline from SNG, the U.S. Federal Energy Regulatory Commission must approve the abandonment and certain closing conditions must be met. If the transaction closes under the currently anticipated conditions, Regency will purchase the pipeline from SNG and make an additional payment to Nexus.
Regency funded the acquisition using borrowings under Regency's revolving credit facility.
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