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 pipelines.
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.
The 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 conditions.
"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. Mills.