Southcross Completes Chapter 11, Shifting HQ to Houston | Rigzone
Southcross Energy Partners LLC affirmed plans to drive growth as a gathering and processing company in the Eagle Ford Shale region now that it has emerged from Chapter 11 bankruptcy proceedings. The company is surfacing in a net cash positive position and with a restructured balance sheet.
“Today is the beginning of an exciting new chapter for Southcross,” Bill Waldheim, Chairman, said in a statement. “We have a high-quality asset base and are moving forward with an aggressive plan to drive growth by investing in our operations and building out our commercial team and its capabilities. We have reduced our debt and our new equity owners have taken great care to create the necessary financial flexibility and a capital budget that will enable us to better serve our customers as we make the transition to the emerged Southcross.”
“In addition, we have new financing in place so we can assure customers of our financial stability. We look forward to reliably providing our customers a full range of complementary gathering and processing services tailored to meet their specific needs.”
The company’s assets include the Lone Star and Woodsboro gas processing plants, the Bonnie View fractionation facility and the Lancaster and Valley Wells gathering and treating system. With the completion of the bankruptcy process, Southcross is consolidating its headquarters in Houston by the end of the first quarter.
Jay Swent will be stepping down as CEO and will serve an advisory role over the coming weeks. New board member Pat Giroir will become the interim CEO, effective immediately.
As part of the company’s reorganization, also Southcross announced the composition of its board of directors: Jacqueline (Jacqui) Dimpel, Robert N. Fitzgerald, Patrick Giroir, William (Bill) Waldheim and Matthew R. Bob.
Southcross provides natural gas gathering, processing, treating, compression and transportation services and NGL fractionation and transportation services. It also sources, purchases, transports and sells natural gas and NGLs. Its assets are in South Texas near the Eagle Ford Shale region and include two cryogenic gas processing plants, two Sour Gas treating plants and a fractionation facility, and about 2,500 miles of pipeline.
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