Southcross Energy Partners to acquire portion of TexStar Midstream

Southcross Energy LLC, owner of the general partner of Southcross Energy Partners LP, announced in June that it agreed to combine with TexStar Midstream Services LP, a privately held gas gathering and processing partnership located in the Eagle Ford shale region of south Texas. The transaction will create an Eagle Ford-focused midstream combination, which will include four processing plants, three fractionation facilities and about 3,700 miles of pipeline. The transaction is expected to close in the third quarter of this year. At that time, a newly formed company, Southcross Holdings LP, will own 100 percent of the general partner of Southcross and equity interests in Southcross as well as former TexStar assets. Also with the closing, Southcross will acquire roughly one-third of TexStar’s midstream assets for about $450 million. Holdings expects to offer over time TexStar’s remaining midstream assets to be sold as drop-downs into Southcross.