Southcross Energy Partners LP (NYSE: SXE) has completed the acquisition of a natural gas gathering system in McMullen County, Texas. The acquired system consists of eight miles of gathering pipelines within two miles of Southcross’ existing rich gas pipeline network and services customers under acreage dedication contracts. The system was placed into service in 2010.
The acquisition of the system has been funded through Southcross’ revolving credit facility and is expected to be immediately accretive to Southcross’ distributable cash flow. Production from the system will be connected as soon as possible to Southcross’ existing pipeline network to be processed at its facilities.
“This transaction is a logical bolt-on acquisition for Southcross,” said David Biegler, chairman and CEO of Southcross’ general partner, “and we will benefit from adding it to our Eagle Ford pipeline system. The acquisition will augment our fixed-fee cash flow stream and we expect further opportunities associated with the system.”