Howard Energy Partners (HEP) today announced the company has commenced operations with the acquisitions of Texas Pipeline LLC and Bottom Line Services, LLC for US$ 76 million. Crosstex Energy, L.P. (and Quanta Services, Inc. both provided US$ 35 million in exchange for approximately 35% in HEP.
HEP provides midstream services through its newly acquired subsidiaries, Texas Pipeline and Bottom Line Services. Both subsidiaries operate primarily in the Eagle Ford Shale in South Texas.
Texas Pipeline operates 250 miles of large-diameter gathering pipelines in Dimmit, Frio, Maverick and Zavala counties in the Eagle Ford and Pearsall shales. The pipeline system is in the vicinity of more than one million acres of owned and operated oil and natural gas leases. Texas Pipeline recently negotiated new long term commitments from oil and gas producers for transportation and gathering services in Dimmit County that will extend the existing system another 30 miles by the third quarter of this year.
Bottom Line Services has successfully constructed more than 500 miles of pipeline and installed more than 70 midstream facilities including amine plants, cryogenic processing plants and compressor stations. The company has been in business since 2003 and is presently involved in more than 30 construction projects for numerous producers in the Eagle Ford Shale. Bottom Line Services has experienced significant growth as a result of the growing infrastructure demands of the Eagle Ford play.
“We are pleased that this unique partnership has come together,” said Mike Howard, Chairman and Chief Executive Officer of Howard Energy Partners. “The well-positioned assets and skilled services of Texas Pipeline and Bottom Line Services, coupled with strong financial backing and management experience, puts Howard Energy Partners in an excellent position for growth.”