Contact Information: Contact: Maura M. Turner 617-619-5457 Rick Lemmon Southcross Energy, LLC 214-393-7506
Charlesbank Completes $220 Million Acquisition of Natural Gas Assets
| Source: Charlesbank Capital Partners
BOSTON, MA--(Marketwire - August 7, 2009) - Charlesbank Capital Partners and Southcross
Energy are pleased to announce the acquisition by Southcross of the South
Texas, Mississippi and Alabama midstream natural gas assets of Crosstex
Energy (NASDAQ : XTEX ). The newly formed Southcross Energy is a natural gas
transportation and processing company located in Dallas. Wells Fargo
Securities arranged the financing for the transaction.
Southcross Energy is led by a seasoned team of industry executives. David
Biegler, Chairman and Chief Executive Officer of Southcross, previously
served as Chairman of Regency Gas Services, Vice Chairman of TXU and
Chairman of ENSERCH. Mike Hunter, President, served as a Regency director
and was formerly President of Lone Star Pipeline. Charlesbank first teamed
with them to pursue midstream investment opportunities in 2002, a
collaboration that culminated in the formation of Regency, a former
Charlesbank portfolio company.
"I am delighted to partner with the Charlesbank team again, and to have
their backing for what I am confident will be a strong company, with an
excellent foundation," said Mr. Biegler. "The initial Southcross portfolio
is an attractive mix of midstream assets that provide a wide range of
essential services to customers and producers in historically rich natural
gas regions."
The South Texas system consists of approximately 1,400 miles of intrastate
gathering and transmission pipelines with throughput capacity of
about 600,000 MMBtu/d and two processing facilities with a total processing
capacity of approximately 195,000 MMBtu/d. The Mississippi and Alabama
systems consist of approximately 780 miles of intrastate gathering and
transmission pipelines with throughput capacity of about 185,000 MMBtu/d.
"After working for more than a year to identify the appropriate midstream
energy opportunity, we are very pleased to complete this transaction," said
Jon Biotti, Managing Director for Charlesbank. "With Southcross, we are
able to acquire a stable set of assets with attractive underlying contracts
alongside a talented and proven management team. We are certain that David
Biegler's team will provide the strong operational focus and strategic
leadership necessary to generate consistent cash flows and grow the asset
base both organically and through acquisition."
About Charlesbank Capital Partners
Charlesbank Capital Partners, LLC is a middle-market private equity
investment firm managing more than $1.5 billion of capital. Charlesbank
focuses on management-led buyouts and growth capital financings, typically
investing $50 million to $100 million per transaction in companies with
enterprise values of $50 million to $750 million. The firm seeks to partner
with strong management teams to build companies with sustainable
competitive advantages and excellent prospects for growth. For more
information, visit www.charlesbank.com.
About Southcross Energy
For additional information about Southcross Energy, LLC, contact Rick
Lemmon at 214-393-7506 or lemmon@southcrossenergy.com.
About the Crosstex Energy Companies
Crosstex Energy, LP (the Partnership), a midstream natural gas company
headquartered in Dallas, operates approximately 3,300 miles of pipeline, 10
processing plants, three fractionators, and approximately 180 natural gas
amine-treating plants and dew-point control plants. The Partnership
currently provides services for 3.2 billion cubic feet per day of natural
gas, or approximately 6 percent of marketed US daily production.
Crosstex Energy, Inc. (NASDAQ : XTXI ) (the Corporation) owns the 2 percent
general partner interest, a 33 percent limited partner interest, and the
incentive distribution rights of Crosstex Energy, LP.
Additional information about the Crosstex companies can be found at
www.crosstexenergy.com