Howard Energy Partners Expands into the Marcellus Shale
March 18, 2015
Howard Energy Partners (HEP) today announced that it has executed a definitive purchase and sale agreement with Southwestern Energy Company (NYSE:SWN) to purchase the company’s northeast Pennsylvania natural gas gathering assets in Bradford and Lycoming counties for $500 million, subject to customary purchase price adjustments. The gathering systems, serving the Marcellus Shale region, include approximately 100 miles of natural gas gathering pipeline, with nearly 600 million cubic feet per day of capacity and 53,000 horsepower of compression.
In addition to the existing systems, HEP plans to design, construct and operate a new natural gas gathering system for SWN in Tioga County, Pennsylvania. Once fully operational, the new system is expected to add up to 380 million cubic feet per day of capacity in the area.
“This is a significant transaction for us as these established assets place Howard Energy Partners in the heart of the prolific Marcellus Shale,” said Brad Bynum, President and Co-Founder of Howard Energy Partners. “This acquisition is a testament to our long-term growth strategy to broaden our footprint and build a diversified portfolio of large-scale assets and revenue streams. We are excited about the development potential in the Marcellus and are honored to enter into this arrangement with Southwestern Energy, one of the largest producers in the area.”
The transaction is expected to close in the second quarter of this year. San Antonio-based HEP plans to open an office in Pennsylvania upon closing.
Investment funds managed by Alinda Capital Partners own approximately 59% of HEP.
The acquisition closed on April 10, 2015.