(Source: MARKETWIRE)
Funds and accounts managed by the Energy & Infrastructure Group of TCW today announced the acquisition of Pinon Gathering Company, LLC ("Pinon"), an indirect wholly-owned subsidiary of SandRidge Energy Inc. (NYSE: SD), for $200 million.
Pinon is a gas gathering company that owns and operates approximately 370 miles of gas gathering lines located in the West Texas Overthrust in Pecos County, Texas. The system primarily serves the Pinon Field and currently has throughput capacity in excess of 400 million cubic feet per day accommodating both sweet and high CO2 gas. Plans are to expand the system to over 1 billion cubic feet per day of throughput capacity over the next several years.
"We believe that the Pinon Field is poised for significant growth and that the gathering system owned by Pinon is the critical piece of infrastructure that will enable this growth to occur. We've had a relationship with Tom Ward, the CEO of SandRidge, since 1990 and this will be the third major investment we will have made in support of businesses associated with Tom. We look forward to having SandRidge as our largest customer," said Kurt Talbot, Chief Investment Officer of TCW's energy business.
About TCW
Founded in 1971, The TCW Group, Inc. develops and manages a broad range of innovative, value-added investment products that strive to enhance and protect clients' wealth. The firm has approximately $100 billion in assets under management. TCW clients include many of the largest corporate and public pension plans, financial institutions, endowments and foundations in the U.S., as well as a substantial number of foreign investors and high net worth individuals. TCW is a subsidiary of Societe Generale Asset Management, which has approximately $400 billion under management.
TCW's Energy & Infrastructure Group is one of the leading providers of institutional capital to the energy sector globally with assets under management of approximately $6 billion and capital invested in more than 250 energy projects and companies in 27 countries. The Group has a 27-year track record in the industry and operates from offices in Los Angeles, Houston, New York, London and Sydney.
Contact: Michael Utley Vice President, Media Relations The TCW Group, Inc. (213) 244-0975 Email Contact
SOURCE: The TCW Group, Inc.
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