Howard Energy Partners has entered into definitive agreements to acquire substantially all of Meritage Midstream Services' natural gas gathering assets in South Texas. HEP will acquire the Eagle Ford Escondido Gathering System, which is partially owned by Laredo Energy, and the Cuervo Creek Gathering System. Both systems are primarily 12-inch to 16-inch high pressure natural gas pipelines. The transaction is expected to close in April, subject to regulatory approvals and customary closing conditions.

The acquisition will be funded primarily with equity investments in HEP by Crosstex Energy, L.P., Quanta Services, Inc., GE Energy Financial Services, a division of General Electric , and Clear Springs Energy Company LLC. After closing of the acquisition and including initial investments, Crosstex and Quanta will have contributed an aggregate of $87.25 million each to HEP. These two companies, along with GE Energy Financial Services, upon the closing of the acquisition, will each own 30.6 percent of the outstanding units in HEP.

Tags: Howard Energy Partners