Eagle Rock Energy has signed an agreement to acquire certain natural gas gathering systems and related facilities located primarily in Wheeler and Hemphill counties in Texas from Centerpoint Energy Field Services for $27.5m.
The transaction has an effective date of 1 October 2010 and is expected to close on or around 15 October 2010, subject to the satisfaction of certain closing conditions.
The assets to be acquired include over 200 miles of gathering pipeline and related compression and dehydration facilities, together with gas gathering contracts, rights of way and other intangible assets.
The assets are located in the core of the prolific Granite Wash play and are highly complementary to Eagle Rock’s existing East Panhandle system.
Eagle Rock has approximately 18,600mmbtu/d of existing gathered volumes generating mostly fixed fee revenues.