Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Energy Spectrum Said to Explore Sale of Texas Pipeline Operator

Dec. 18 (Bloomberg) -- Buyout firm Energy Spectrum Capital LP is exploring a sale of Hoover Energy Partners LP, which gathers and processes oil and gas in Texas’s Permian basin, according to three people familiar with the matter.

Energy Spectrum is working with Evercore Partners Inc. to seek buyers for Hoover, which could fetch about $500 million, said the people, who asked not to be identified because the matter is not public.

Takeovers of U.S. pipeline companies rose in 2013 despite an overall lull in energy mergers, as a U.S. oil and gas production surge drove companies to expand storage and transportation capacity. Hoover, of Houston, operates more than 700 miles of gas, oil and water pipeline in Texas, the center of the country’s shale energy boom.

Boosted by growth from the Permian basin and the Eagle Ford shale formation, production in Texas rose to 2.7 million barrels a day in September, according to the U.S. Energy Information Administration. That’s the best single month in 30 years, and higher than the output of Nigeria, EIA data show.

Dana Gorman, a spokesman for Evercore, declined to comment. Energy Spectrum Partner Thomas Whitener and Hoover Energy President Randy Hoover didn’t return calls for comment,

Hoover, founded in 2008, is one of at least four Texas-backed pipeline operators to go on the block this year.

NGP Energy Capital Management LLC sold Teak Midstream LLC to Atlas Pipeline Partners LP for $1 billion in May. Similar companies backed by EIG Global Energy Partners LLC and ArcLight Capital Partners LLC have also explored selling, people familiar with the matter told Bloomberg News earlier this year.

There were $27.2 billion in takeovers of U.S. pipeline companies announced through Dec. 1, up 31% from a year earlier, according to data compiled by Bloomberg. Excluding pipelines, the value of U.S. energy deals dropped 30 percent to $77.6 billion, the data show.

To contact the reporter on this story: Matthew Monks in New York at mmonks1@bloomberg.net

To contact the editor responsible for this story: Mohammed Hadi at mhadi1@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.