Magnum Hunter Resources Corporation said Eureka Hunter Holdings has signed a deal with TransTex Gas Services to acquire all of the assets of TransTex for $58.5m.
The deal consists of $46.8m in cash and $11.7m in common units of Eureka Hunter, with funding for the cash portion provided by an affiliate of ArcLight Capital Partners.
TransTex, started in 2006, is primarily engaged in the business of treating natural gas, including the leasing of equipment to third parties in need of natural gas treating.
The company’s fleet is comprised of 50 amine plants to treat and remove CO2 and H2S from natural gas and an interest in a fleet of hydrocarbon dew point control plants with plants ranging from 5GPM to 300GPM in the gas treating business.
This facility is in very close proximity to the Eagle Ford Shale drilling activity in southwest Texas where Magnum Hunter is presently active with four drilling rigs operating today.
Magnum Hunter will have a 72% interest in Eureka Hunter following the closing of TransTex acquisition, expected to close on April 2 2012.