By Dallas Business Journal

Regency Energy Partners says it has sold natural gas pipeline and processing assets for $70 million to an affiliate of Tristream Energy LLC.

Dallas-based Regency (NYSE: RGNC) said it will use the proceeds of the deal to fund future growth opportunities.

⿿The sale of Regency⿿s east Texas assets allows us to place greater focus on the expansion of core assets within higher-growth regions, including several of the major shale plays,⿝ said Byron Kelley, president and chief executive officer of Regency.

The pipeline assets sold are in Wood, Van Zandt, and Henderson counties. They include 371 miles of pipeline, a compression plant in Myrtle Springs and processing facilities in Eustace.

Regencyâ¿¿s general partner was acquired by Energy Transfer Equity (NYSE: ETE) in May.

Tristream Energy is a private natural gas pipeline company based in Sugar Land. It is owned in part by Haddington Energy Partners III LP, a Houston private equity fund.

Copyright 2010 American City Business Journals
Copyright 2010