Exco Resources Considers Offering One-Third Interest In Midstream JV

To acquire one-third stake in TGGT Holdings LLC, which features 1,000 miles of pipeline between N LA & E TX, 4 Bcf/d delivery capacity.

Exco Resources Inc., Dallas, (NYSE: XCO) has entered into an agreement granting a 45-day exclusivity period to an unaffiliated private infrastructure fund to negotiate the sale of a one-third equity interest in TGGT Holdings LLC for $400 million.

Exco anticipates that an affiliate of BG Group Plc, London, (London: BG) will participate in the sale transaction on a pro rata basis. TGGT is a joint-venture entity owned 50/50 by affiliates of Exco and BG Group.

TGGT Holdings owns and operates more than 1,000 miles of nonjurisdictional gathering pipelines that move natural gas from North Louisiana and East Texas supply basins to 25 existing/pending major intrastate and interstate pipelines in the region. The pipelines have a combined delivery capacity of approximately 4 billion cubic feet per day including 1.4 billion cubic feet of treating capacity.