Hicks Muse to spend $405m on gas

Dallas-based buyout shop Hicks, Muse, Tate & Furst will acquire Regency Gas Services, a US gas gathering, processing and transmission company.

Dallas-based Hicks, Muse, Tate & Furst has announced an agreement to acquire Regency Gas Services for $405 million (€318 million).

Regency, with operations in north Louisiana, west Texas and the Mid-Continental region, is a “midstream” gas gathering, processing and transmission company. It was formed in May 2003 by a group of experienced energy industry operators and Boston-based Charlesbank Capital Partners from assets previously owned by El Paso Energy and Duke Energy. Regency's systems connect approximately 2,800 wells to nearly 3,000 miles of pipeline.

The Regency purchase is Hicks Muse’s latest inroad into the energy sector. In August, the firm bought San Antonio, Texas-based Kerns Oil & Gas, renamed BlackBrush Energy. The firm other energy investments include Triton Energy and Trident NGL.

Hicks Muse currently manages approximately $11 billion and has offices in London, New York and Buenos Aires.