Zephyr’s assets closely align with Regency’s gathering and processing and compression segments as both are located in high-growth areas including the Haynesville and Eagle Ford shales. In addition to treating, Zephyr provides field services including gas cooling, dehydration, JT plant leasing and sulfur treating services.
Regency expects to integrate Zephyr’s current management into the existing reporting structure of its contract compression segment.
The acquisition is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.
Byron Kelley, president and CEO of Regency, said: “With a high-quality treating platform added to our existing midstream, compression and transportation business segments, we believe we will be able to provide a full suite of contract services and an unmatched set of offerings for our producers.
“In addition, the acquisition of Zephyr will add fee-based margins to Regency’s business mix and is expected to be immediately accretive.”
Regency is engaged in the gathering, contract compression, processing, marketing and transporting of natural gas and natural gas liquids.
