DALLAS — Crosstex Energy, L.P., has entered into a definitive agreement to sell its assets in Mississippi, Alabama and South Texas for $220 million to Southcross Energy, LLC, a Dallas-based natural gas transportation and processing company. Crosstex expects the sale to close on July 31, 2009.
“The sale of our Mississippi, Alabama and South Texas assets enables us to strengthen our balance sheet as we pursue our strategy to increase liquidity, reduce leverage and improve profitability,” said Barry E. Davis, Crosstex president and CEO.
“These are perfect assets to provide the foundation of our new company,” said David Biegler, chairman and CEO of Southcross Energy. “This is a well-balanced portfolio across a broad range of assets that also provides strong organic, as well as acquisition, growth prospects.”
The Mississippi and Alabama systems consist of approximately 780 miles of intrastate gathering and transmission pipelines with throughput capacity of about 185,000 million British thermal units per day.