Tristream Energy Announces Acquisition of East Texas Processing Assets

HOUSTON (July 29, 2010) – Tristream Energy, LLC announced today that it acquired the East Texas gathering and processing assets of a subsidiary of Dallas-based Regency Energy Partners LP on July 15, 2010.

 The acquired assets include gas treating and processing facilities in Eustace, Texas, a condensate sweetening plant in Myrtle Springs, Texas, and approximately 371 miles of gathering pipeline. The assets are primarily located in Henderson, Van Zandt, Rains, Wood, Hopkins, and Franklin counties, Texas.

 “The acquisition of the Eustace facilities will expand our midstream gas gathering business in Texas,” said Ken Purgason, president and chief executive officer of Tristream Energy. “We look forward to the aggressive addition of new reserves to the system and continuing our acquisition and grass roots development opportunities in the midstream gas sector.”

 The Eustace Gas Plant is a state of the art gas treating and processing facility. It consists of an 1800 GPM Sulfinol treating unit with a rated capacity of 70 MMCFD, an 800 long ton per day sulfur recovery unit, a Scot tail gas treating unit, a 35 MMCFD nitrogen rejection unit, a cryogenic natural gas liquids recovery plant, an 1800 barrel per day condensate stabilization unit, and a sulfur railcar loading terminal.

 The Myrtle Springs Plant is a 3000 barrel per day condensate treating and stabilization facility, which includes a Merichem treating unit capable of removing hydrogen sulfide and mercaptans. With truck loading and unloading capabilities, the Myrtle Springs facility is able to receive condensate by pipeline or truck.
Equity financing was provided by Tristream’s management and private equity funds sponsored by Haddington Ventures, LLC, a Houston based private equity firm.

 Haddington Ventures, LLC, through its private equity funds, generally makes control oriented investments in companies focused on gathering, separation, processing, treating, compression, storage, and transmission of energy. Haddington principals developed many of the independent high-eliverability natural gas storage facilities in the U.S. Haddington is unique in that it is the only midstream energy fund in which all principals have substantial direct operating company experience, both in energy-related acquisitions and in energy infrastructure development. For more information, visit www.hvllc.com.
 
Tristream Energy is a midstream services company that builds, owns and operates pipeline infrastructure and provides natural gas producers with processing, gathering marketing and other related services. Tristream Energy is headquartered in Sugar Land,Texas. For more information, visit www.tristreamenergy.com.
Ken Purgason
Phone: (281) 240-8444
Author: Ken Purgason
Phone: (281) 240-8444