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| 8-K - FORM 8-K - Regency Energy Partners LP | form8k.htm |
Regency
Energy Partners, GE Energy Financial Services and
Alinda
Capital Partners Announce Haynesville Expansion Project In Service
Pipeline
Project Completed Under Budget
DALLAS,
January 27, 2010 – Regency Energy Partners LP (Nasdaq: RGNC), Alinda Capital
Partners LLC (“Alinda”) and an affiliate of GE Energy Financial Services
(collectively, the “Joint Venture”) announced today that its Haynesville
Expansion Project and Red River Lateral are in service. The
Haynesville Expansion Project and the Red River Lateral increase the total
pipeline capacity of the Regency Intrastate Gas System (“RIGS”) to approximately
2.1 Bcf/d.
“The
Haynesville Expansion Project was specifically constructed to provide much
needed takeaway capacity for Haynesville Shale gas in North Louisiana and is the
first major project to be placed in service in the region,” said Byron Kelley,
chairman, president and chief executive officer of Regency. “This
accomplishment is a testament to the execution and dedication of our
construction team and contractors, who worked diligently to ensure an
under-budget completion, despite challenging weather conditions.”
“We
continue to see impressive drilling results in the Haynesville Shale, and the
Joint Venture is evaluating additional expansions to RIGS, which we believe is
well positioned for future growth in the region,” continued Kelley.
The
Haynesville Expansion Project and the Red River Lateral are underwritten by firm
transportation agreements with 10-year terms, and approximately 85
percent of projected revenues are expected to come from reservation
fees. RIGS will begin charging shippers for reservation fees
commencing February 1, 2010.
About
Regency Energy Partners
Regency
Energy Partners LP (Nasdaq: RGNC) is a growth-oriented, midstream energy
partnership engaged in the gathering, contract compression, processing,
marketing and transporting of natural gas and natural gas liquids. Regency's
general partner is majority-owned by an affiliate of GE Energy Financial
Services, a unit of GE (NYSE: GE). For more information, visit the Regency
Energy Partners LP Web site at .
About
Alinda Capital Partners LLC
Alinda
Capital Partners LLC is the largest manager in the United States of pension
assets for infrastructure investments, and the second largest in the world, with
over $6 billion in capital commitments. Alinda’s investors are predominantly
pension funds for public sector and private sector workers and include some of
the largest institutional investors in the world. Alinda has ownership interests
in airports, ports, roads, rail, gas distribution and transmission, gas
pipelines, water and wastewater, and other infrastructure assets that provide
essential services to communities, governments and businesses. Alinda’s
portfolio companies serve over 125 million customers annually. For more
information, visit www.alinda.com.
About
GE Energy Financial Services
GE Energy
Financial Services’ experts invest globally with a long-term view, backed by the
best of GE’s technical know-how, financial strength and rigorous risk
management, across the capital spectrum, in one of the world’s most
capital-intensive industries, energy. GE Energy Financial Services helps its
customers and GE grow through new investments, strong partnerships and
optimization of its more than $22 billion in assets. GE Energy Financial
Services is based in Stamford, Connecticut. For more information, visit
www.geenergyfinancialservices.com.
This
press release may contain forward-looking statements regarding Regency Energy
Partners, including projections, estimates, forecasts, plans and objectives.
These statements are based on management's current projections, estimates,
forecasts, plans and objectives and are not guarantees of future performance. In
addition, these statements are subject to certain risks, uncertainties and other
assumptions that are difficult to predict and may be beyond our control. These
risks and uncertainties include changes in laws and regulations impacting the
gathering, processing, transportation and contract compression businesses, the
level of creditworthiness of the Partnership's counterparties, the Partnership's
ability to access the debt and equity markets, the Partnership's use of
derivative financial instruments to hedge commodity and interest rate risks, the
amount of collateral required to be posted from time to time in the
Partnership's transactions, changes in commodity prices, interest rates, demand
for the Partnership's services, weather and other natural phenomena, industry
changes including the impact of consolidations and changes in competition, the
Partnership's ability to obtain required approvals for construction or
modernization of the Partnership's facilities and the timing of production from
such facilities, and the effect of accounting pronouncements issued periodically
by accounting standard setting boards. Therefore, actual results and outcomes
may differ materially from those expressed in such forward-looking
information.
Specifically,
the success of Regency’s Haynesville Expansion Project is subject to the
successful exploration and development of the Haynesville Shale, a new and
emerging natural gas play. The results of producers’ exploratory drilling in new
or emerging plays, such as the Haynesville Shale, are more uncertain than
drilling results in areas that are developed and have established
production. Since the Haynesville Shale has limited production
history, past drilling results in this area will be of limited help in
predicting future drilling results in the area. To the extent that
producers in the area are unable to execute their exploratory drilling and
development plans in this area, the return on Regency’s investment from this
project may not be as attractive as originally anticipated.
In light
of these risks, uncertainties and assumptions, the events described in the
forward-looking statements might not occur or might occur to a different extent
or at a different time than the Partnership has described. The Partnership
undertakes no obligation to update publicly or to revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
CONTACTS:
Investor
Relations:
Shannon
Ming
Vice
President, Investor Relations & Corporate Finance Support
Regency
Energy Partners
214-840-5477
IR@regencygas.com
Media
Relations:
Elizabeth
Cornelius
HCK2
Partners
972-716-0500
x26
elizabeth.cornelius@hck2.com
Chris
Beale
Alinda
Capital Partners LLC
212-838-6403
Andy
Katell
GE Energy
Financial Services
203-961-5773