Energy Transfer grabs stake in PennTex Midstream

Energy Transfer, the owner of the Lake Charles regasification facility, on Tuesday, inked the agreement to acquire interests in PennTex Midstream for US$640 million.

Upon closing the transaction Energy Transfer will own 100 percent of the general partner of PTXP, together with all of its incentive distribution rights (IDRs), as well as 6.3 million common units and all 20 million subordinated units of PTXP, representing approximately 65 percent of the total limited partner interests in PTXP.

The acquisition consideration paid by Energy Transfer will be 50 percent company’s common units issued directly to sellers and 50 percent cash, Energy Transfer said in a statement.

PennTex Midstream owns midstream assets located in the Terryville Complex in northern Louisiana that consist of a rich natural gas gathering system, two cryogenic natural gas processing plants totaling 400 million cubic feet per day of capacity, along with residue gas and natural gas liquids pipelines.

The transaction is expected to close in the fourth quarter of 2016.