(Source: Datamonitor)
Independent midstream energy services company Crosstex Energy has completed the sale of its undivided 12.4% interest in the Seminole gas processing plant in Texas to plant operator Hess Corporation for $85 million.
The Seminole plant is a tertiary recovery facility operated to reinject CO2 into the San Andres unit in Gaines County, Texas. Crosstex's interest in the facility was accounted for as part of the Treating Division.
In addition to the Seminole transaction, the partnership completed the sale of another non-strategic asset for $20 million, which resulted in total proceeds from both transactions of $105 million. Crosstex has also completed the amendment of its existing debt covenants to create additional room to operate.
Barry Davis, chairman, president and CEO of Crosstex, said: "In these times of challenging capital markets and a continually changing business environment, we are pushing ahead to execute our strategy. We have said that one of our primary actions to improve liquidity is to divest non-strategic assets."
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