Alinda Capital Partners has acquired a 59% stake in Howard Energy Partners. No financial terms were disclosed. The sellers were Quanta Capital Solutions, GE Energy Financial Services, Clear Springs Energy and other unnamed minority stakeholders. Tudor, Pickering, Holt & Co. advised HEP in the transaction. Based in San Antonio, Texas, HEP is an independent midstream energy company.
SAN ANTONIO–(BUSINESS WIRE)–Howard Midstream Energy Partners, LLC d/b/a Howard Energy Partners (HEP or Howard) today announced that investment funds managed by Alinda Capital Partners (Alinda) have acquired a 59 percent capital unit interest in Howard. Alinda is one of the world’s largest infrastructure investment firms with over $7.8 billion in equity commitments.
The 59 percent interest in HEP acquired by Alinda represents the ownership previously held by Quanta Capital Solutions, Inc., a subsidiary of Quanta Services, Inc. (NYSE: PWR), GE Energy Financial Services, a business unit of GE (NYSE: GE), Clear Springs Energy, LLC and other minority interest holders. Post-closing, Crosstex Energy, L.P. (NASDAQ: XTEX) will retain its 31 percent ownership of the outstanding capital units in HEP, with the remaining capital units owned by management and other minority interest holders. Tudor, Pickering, Holt & Co. acted as exclusive financial advisor to HEP in the transaction.
“Relationships are very important to us and we have a long history of working with strong partners who share our vision and values,” said Mike Howard, Chairman and Chief Executive Officer of Howard Energy Partners. “Quanta, Clear Springs Energy and GE have been very important and beneficial partners to us and we look forward to now working with Alinda and Crosstex. We are confident that this new partnership will allow us to expand into new business lines, offering our customers an even broader range of midstream services.”
“We are delighted to be entering into a partnership with the Howard Energy Partners management team and Crosstex,” said Chris Beale, Alinda’s Managing Partner. “In a very short time, HEP has built an impressive base of midstream assets supporting energy producers in South Texas. We are excited by the prospects for growth and look forward to working with our partners to support the ongoing development of critical energy infrastructure in the Eagle Ford region.”
“The Howard team has demonstrated the ability to create significant value and we believe there is greater upside potential to come with this investment,” said Barry E. Davis, Crosstex President and Chief Executive Officer. “We look forward to continuing our successful partnership with Howard alongside Alinda as a new investment partner.”
ABOUT THE COMPANIES:
Howard Energy Partners: San Antonio-based Howard Midstream Energy Partners, LLC d/b/a Howard Energy Partners is an independent midstream energy company, owning and operating approximately 500 miles of natural gas pipelines, natural gas liquids processing plants, amine treating plants, a railroad park and other related midstream facilities in South Texas primarily serving the Olmos, Escondido and Eagle Ford resource plays. The company continues to execute on its growth and expansion plans and expects to complete development of the new Reveille cryogenic natural gas processing plant located in Webb County, Texas prior to the end of the year. The company has offices in Houston, San Antonio, Asherton, and Laredo, Texas. For more information on Howard Energy Partners, please visit our website www.howardenergypartners.com.
Alinda Capital Partners: Alinda Capital Partners is one of the world’s largest infrastructure investment firms with over $7.8 billion in equity commitments to infrastructure investments. Alinda has invested in infrastructure businesses that operate in 33 states in the United States as well as in Canada, the United Kingdom, Germany, the Netherlands, Austria, Belgium and Luxembourg. These businesses serve 100 million customers annually in more than 400 cities globally, and employ more than 15,000 people.
Alinda’s investors are predominantly pension funds for public sector and private sector workers. These institutions seek steady investments over the long term, matching their pension liabilities. They include some of the largest institutional investors in the world. Alinda and its subsidiaries have two offices in the United States – in Greenwich, Connecticut and in Houston, Texas – and two offices in Europe – in London, England and in Düsseldorf, Germany. Additional information concerning Alinda is available on its website at www.alinda.com
Crosstex Energy: Crosstex Energy, L.P., is an integrated midstream energy partnership headquartered in Dallas, Texas that offers diversified, tailored customer solutions spanning the energy value chain with services and infrastructure that link energy production with consumption. Crosstex operates approximately 3,500 miles of natural gas, natural gas liquids and oil pipelines, 10 natural gas processing plants and four fractionators, as well as barge and rail terminals, product storage facilities, brine disposal wells and an extensive truck fleet. Additional information about Crosstex Energy, L.P. can be found at www.crosstexenergy.com.