Centre Sells Nexus Gas

Centre Partners and Centre Southwest Partners have sold Nexus Gas Holdings to Regency Energy Partners LP (RGNC) for $85 million, plus possible earn-out payments. Centre Partners formed Nexus in late 2006 as an acquisition platform focused on midstream energy assets.

 

PRESS RELEASE

Centre Partners Management LLC and Centre Southwest Partners LLC today closed the sale of Nexus Gas Holdings, LLC to Regency Energy Partners LP (Nasdaq: RGNC) for initial consideration of $85 million, in addition to certain contingent consideration. Nexus Gas Holdings, LLC, a wholly-owned subsidiary of Nexus Gas Partners, LLC, is a midstream provider of natural gas gathering, dehydration and compression services for producers in the active exploration and development regions of East Texas and Northern Louisiana.

 

Nexus Gas Partners, LLC was formed by Centre Partners, Centre Southwest and two experienced midstream executives — Fritz Brinkman and Mike Davis — in late 2006 to build a high-quality portfolio of midstream assets through organic development and acquisitions.

 

Centre Partners Senior Partner Scott Perekslis said, “Immediately after closing the initial platform acquisition in January 2007, the Nexus team initiated a series of important growth projects that have substantially improved the geographic reach and performance of the system. Today, the realization of our investment in Nexus Gas represents an important success for our investors, our partners at Centre Southwest, and all of the management and employees of Nexus Gas.”

 

The Nexus Gas pipeline network includes the Logansport System, which currently gathers natural gas from various producing fields in Shelby County and Panola County, Texas and DeSoto Parish, Lousiana. The Logansport System consists of approximately 80 miles of low and high-pressure gathering pipelines and related compression and dehydration equipment.

 

With this transaction, Regency will also acquire the definitive agreement Nexus entered into with Southern Natural Gas Company (“SNG”) to purchase 136 miles of pipeline and related facilities in the region located west of Bienville, Louisiana. Regency's acquisition of the SNG assets remains subject to approval by the Federal Energy Regulatory Commission.

 

Centre Southwest Founding Partner Kent Sweezey praised management for increasing the strategic relevance of the Nexus assets within its operating regions in such a short period of time. “We credit our management team with balancing the exciting growth projects we have been pursuing while retaining a daily focus on serving our customer base of producers. Many opportunities to enhance the system remain, and we believe the Regency team is well positioned to pursue additional projects for its combined system.”

 

About Centre Partners

 

Centre Partners, founded in 1986, is a leading private equity firm with a middle market focus that seeks to make acquisitions and equity investments alongside management teams who have or desire a meaningful economic stake in the future success of their businesses. Centre Partners' Managing Directors have invested over $3 billion in more than 90 companies, partnering with management teams across a broad spectrum of industries. Centre Partners provides those teams with access to its unique resources, which include an extended network of experienced and proven operating executives. Centre Partners has offices in New York City and Los Angeles. The firm is currently investing through its fifth fund, which has approximately $880 million of committed capital. In addition to the energy sector focus it has developed in recent years, Centre has deep investment expertise covering consumer, healthcare, industrial products and services, media, restaurants, retail, and aviation services. Additional information is available at http://www.centrepartners.com .

 

About Centre Southwest Partners

 

Founded in 2004, Centre Southwest Partners was a Dallas-based private equity firm formed to make investments in middle-market companies in the southwestern U.S., with an emphasis on energy and energy-related industries. In early 2008, the founding partners of Centre Southwest, in partnership with several experienced investors in the southwest region, formed Turnbridge Capital LLC. Turnbridge, with offices in Dallas and Houston, is focused on middle-market private equity investments across a range of industries, with a particular focus on companies operating in the southwestern U.S., a region where the principals have spent their entire careers. Additional information is available at http://www.turnbridgecapital.com .