Rex Energy owns 40% of Keystone Midstream and has contributed to the JV its existing gathering system in Butler County, Pennsylvania. Stonehenge owns 60% of Keystone Midstream and has contributed to the JV the Sarsen Gas Plant, a cryogenic gas plant with 40 Mmcf per day of processing capacity.
In conjunction with the formation of the JV, Rex Energy has entered into a gathering and processing agreement with Keystone Midstream in which Rex Energy has reserved 20 Mmcf per day of capacity in the Sarsen Gas Plant in 2010 and 40 Mmcf per day of capacity thereafter. Stonehenge will manage the operations of Keystone Midstream.
Benjamin Hulburt, president and CEO of Rex Energy, said: “Forming the Keystone Midstream joint venture significantly reduces Rex Energy’s capital investment in necessary infrastructure in Butler County and leverages the extensive midstream experience of the Stonehenge management team.”
Stonehenge Energy Resources was formed to design, build, own and operate midstream assets, such as natural gas gathering, treating and processing facilities. Stonehenge is a portfolio company of Energy Spectrum Capital, a private equity firm focused on the energy industry with approximately $1 billion in assets under management.
