Regency Energy Partners LP, whose general partner is majority-owned by an affiliate of GE Energy Financial Services, has received antitrust clearance to buy FrontStreet Hugoton LLC and FrontStreet Energyone LLC from GE Financial Services for $139 million.

“This acquisition represents a drop-down from GE Energy Financial Services’ midstream portfolio to Regency,” said James F. Burgoyne, chairman of Regency’s executive committee and managing director at GE Energy Financial Services. “In line with our strategy of leveraging Regency as a platform for growth in the midstream sector, we expect this acquisition will be supplemented by additional acquisitions along with organic growth.”

Dallas-based Regency announced the transaction earlier this month, saying the acquisition would increase its asset base in the Midcontinent region. FrontStreet Hugoton owns the Hugoton gas gathering system in Kansas and Oklahoma, which consists of five compressor stations with 55,329 hp and 1,700 miles of pipeline extending over nine counties. The Hugoton system is operated by BP America Production Co.

“The Hugoton assets significantly expand our presence in Kansas and complement our existing gathering system in the Midcontinent region,” said Regency CEO James W. Hunt. “This area in Southwest Kansas consists of long-lived, mature reserves that have been producing since the 1930s.”

The Federal Trade Commission said Wednesday it granted early termination of the waiting period required under the Hart-Scott-Rodino antitrust law.

FrontStreet Hugoton paid $100 million to Williams for the Hugoton system in 2002 (see Daily GPI, Aug. 5, 2002).

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