DALLAS--(BUSINESS WIRE)--Southcross Energy Partners, L.P. (NYSE: SXE) (“Southcross”) announced today that it has completed the acquisition of a natural gas gathering system in McMullen County, Texas.
The acquired system consists of eight miles of gathering pipelines within two miles of Southcross’ existing rich gas pipeline network and services customers under acreage dedication contracts. The system was placed into service in 2010.
The acquisition of the system has been funded through Southcross’ revolving credit facility and is expected to be immediately accretive to Southcross’ distributable cash flow. Production from the system will be connected as soon as possible to Southcross’ existing pipeline network to be processed at its facilities.
“This transaction is a logical bolt-on acquisition for Southcross,” said David Biegler, Chairman and Chief Executive Officer of Southcross’ general partner, “and we will benefit from adding it to our Eagle Ford pipeline system. The acquisition will augment our fixed-fee cash flow stream and we expect further opportunities associated with the system.”
About Southcross Energy Partners, L.P.
Southcross Energy Partners, L.P. is a master limited partnership that provides natural gas gathering, processing, treating, compression and transportation services and NGL fractionation and transportation services. It also sources, purchases, transports and sells natural gas and NGLs. Its assets are located in South Texas, Mississippi and Alabama and include four gas processing plants, two fractionation plants and approximately 3,000 miles of pipeline. The South Texas assets are located in or near the Eagle Ford shale region. Southcross is headquartered in Dallas, Texas. For more information, visit www.southcrossenergy.com.
This press release includes certain statements concerning expectations for the future that are forward-looking within the meaning of the federal securities laws. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain the words “expect,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “will be,” “will continue,” “will likely result,” and similar expressions, or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the ability to complete any potential future drop-down transaction. Although management believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, management can give no assurance they will prove to be correct. Forward-looking statements contain known and unknown risks and uncertainties (many of which are difficult to predict and beyond management’s control) that may cause actual results in future periods to differ materially from anticipated or projected results. Any forward-looking statements in this press release are made as of the date hereof and management undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.