The transaction adds fee-based margins to Regency’s business mix and is expected to be immediately accretive to unitholders.
Regency president and CEO Byron Kelley said adding a high-quality treating platform to the company’s existing Midstream, Contract Compression and Transportation business segments enables it to provide a full suite of contract services and meet producers’ needs from wellhead to market.
Zephyr’s assets closely align with Regency’s Gathering and Processing and Contract Compression segments as both are strategically located in high-growth areas, including the Haynesville and Eagle Ford shales.
In addition to treating, Zephyr provides a full range of field services, including gas cooling, dehydration, JT plant leasing and sulfur treating services.
Regency expects to integrate Zephyr’s operations and management team into the existing reporting structure of its Contract Compression segment.
