CenterPoint Energy Field Services, LLC (CEFS), an indirect, wholly-owned natural gas gathering, processing and treating subsidiary of CenterPoint Energy, Inc. (CNP), announced that it has entered into two agreements to acquire gathering and processing assets located primarily in northeast Texas.
- The first is an agreement to acquire gathering and processing assets from Prism Gas Systems I, L.P. (Prism), a wholly-owned subsidiary of Martin Midstream Partners L.P. (MMLP), and certain other gathering and processing assets from MMLP's Natural Gas Services segment for approximately $275 million, subject to certain adjustments. The assets to be acquired include Prism's 50 percent interest in Waskom Gas Processing Company (Waskom). A subsidiary of CEFS currently owns the other 50 percent interest in Waskom.
- CEFS has also entered into a 15-year agreement with Encana Oil & Gas (USA) Inc. (Encana), a subsidiary of Encana Corporation (ECA), to gather and treat its natural gas production from the Amoruso and Hilltop fields located in Robertson and Leon counties in east Texas. In connection with entering into the gathering agreement, which includes volume commitments and acreage dedication, CEFS purchased Encana's 139-mile Amoruso gathering systems for approximately $89 million. Amoruso currently has more than 200 million cubic feet per day of natural gas throughput primarily from the Deep Bossier and Cotton Valley Lime formations.
"We are very excited about these acquisitions, which will strategically increase our portfolio of gathering and processing assets," said Greg Harper, group president of CenterPoint Energy's Midstream businesses. "These transactions expand our capabilities in a liquids-rich production area and position us as the operator of key processing assets in northeast Texas."
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