Southcross Energy to acquire TexStar midstream assets for ~$450M

|About: Southcross Energy Partners (SXE)|By:, SA News Editor

Southcross Energy (SXE) agrees to acquire roughly one-third of the midstream assets of TexStar Midstream Services, a privately-held gas gathering and processing partnership located in the Eagle Ford shale region of south Texas, for ~$450M.

SXE says the deal will create the premier Eagle Ford-focused midstream combination, which will include four processing plants, three fractionation facilities and ~3,700 miles of pipeline.

SXE expects the drop-down to be accretive to distributable cash flow during the first year of operations and enable SXE to increase its distributions per unit by Q1 2015.