BP has agreed to sell its Sunray and Hemphill gas
processing plants in Texas, together with their associated
gas gathering system, to Eagle Rock Energy Partners for $227.5
million in cash, the companies said late Friday.
The Sunray plant, in Moore County, and the Hemphill plant,
in Hemphill County, have combined processing capacity of
approximately 220 million cubic feet/day of gas (mmcf/d) and an
associated gathering system of around 2,500 miles of
BP said it believes the assets, which serve BP's natural
gas production in the Texas Panhandle region, will be more
strategically valuable to a company like Eagle Rock that
specializes in midstream oil and gas operations.
agreement does not include BP's natural
gas producing assets in the area.
The transaction is expected to close in the fourth quarter
of 2012, subject to regulatory approvals and customary closing
"We are excited about this transaction as it meaningfully
grows and strengthens our midstream gathering and processing
position in the liquids-rich Granite Wash and Cleveland plays
in the Texas Panhandle, said Eagle Rock CEO Joseph A.