Good News In Bleak Times

This is good news for producers in the Haynesville Shale Play in NW Louisiana and East Texas. It is good to hear someone is spending and investing.
Peter


Friday, February 27, 2009, 10:08am CST
Regency Energy lines up financing for Haynesville expansion
Dallas Business Journal
Natural gas pipeline company Regency Energy Partners has entered into a joint venture to finance the construction of Regency’s Haynesville Shale pipeline project, a pipeline expansion initiative that will transport gas out of the gas-rich Haynesville Shale in Northern Louisiana.
GE Energy Financial Services, and Alinda Capital Partners LLC are financing the deal in a joint venture arrangement with Regency.

As part of the joint venture, Regency (Nasdaq: RGNC) brings its $400 million Regency Intrastate Gas System to the table, while GE Energy Financial Services and Alinda Capital Partners LLC have agreed to contribute $126.5 million and $526.5 million, respectively, in cash towards the venture in exchange for a 12 percent and 50 percent interest in the general partnership established with Regency.

Regency will receive a cash payment covering the entire cost of the expansion project. The cash payment also provides Regency with a level of financing that enables the expansion project to move forward, while allowing Regency to continue to finance its current distribution levels.
Thus far, Regency says shippers wanting to utilize the pipeline’s capacity have already committed to using up to 84 percent of the pipeline’s capacity. The expansion is projected to double Regency’s pipeline in North Louisiana. The project should be in service by the end of this year.
The joint-venture between the companies is expected to close by April 30.