Southcross Version 2.0
Amid the flurry of bankruptcies we’ve witnessed recently, it’s good to hear when an industry brother emerges stronger and leaner. Such is the case this week for Southcross Energy and its sweeping transformation inside and out. The Dallas-based midstream company has announced a new CEO, new board, new headquarters (Houston), new equity owners, new business structure (MLP to LLC), and a singular focus on the Eagle Ford. Reese Energy Consulting today is following the latest news from Southcross, which last year sold its natural gas pipeline network in Corpus Christi to Kinder Morgan for $76 million and pipeline and related assets in Mississippi and Alabama to Magnolia Infrastructure for $31.5 million. With a tailwind of new financing and heavy reorganization, the company now looks to invest and grow its South Texas midstream operations that include the Lone Star and Woodsboro processing plants, the Bonnie View fractionation facility, and the Lancaster and Valley Wells gathering and treating system. We wish them well.