Howard Midstream Energy Partners, LLC d/b/a Howard Energy Partners (HEP or Howard) today announced that investment funds managed by Alinda Capital Partners (Alinda) have acquired a 59 percent capital unit interest in Howard. Alinda is one of the world's largest infrastructure investment firms with over $7.8 billion in equity commitments.
The 59 percent interest in HEP acquired by Alinda represents the ownership previously held by Quanta Capital Solutions, Inc., a subsidiary of Quanta Services, Inc. (NYSE: PWR), GE Energy Financial Services, a business unit of GE (NYSE: GE), Clear Springs Energy, LLC and other minority interest holders. Post-closing, Crosstex Energy, L.P. (NASDAQ: XTEX) will retain its 31 percent ownership of the outstanding capital units in HEP, with the remaining capital units owned by management and other minority interest holders. Tudor, Pickering, Holt & Co. acted as exclusive financial advisor to HEP in the transaction.
“Relationships are very important to us and we have a long history of working with strong partners who share our vision and values,” said Mike Howard, Chairman and Chief Executive Officer of Howard Energy Partners. “Quanta, Clear Springs Energy and GE have been very important and beneficial partners to us and we look forward to now working with Alinda and Crosstex. We are confident that this new partnership will allow us to expand into new business lines, offering our customers an even broader range of midstream services.”
"We are delighted to be entering into a partnership with the Howard Energy Partners management team and Crosstex,” said Chris Beale, Alinda’s Managing Partner. “In a very short time, HEP has built an impressive base of midstream assets supporting energy producers in South Texas. We are excited by the prospects for growth and look forward to working with our partners to support the ongoing development of critical energy infrastructure in the Eagle Ford region."