Porter Hedges Represents Azure Midstream Energy in the Acquisition of an EXCO and BG Group Joint Venture (TGGT Holdings) for $910 Million

Porter Hedges represented private equity backed Azure Midstream Energy LP (“Azure”) in an agreement to acquire TGGT Holdings, a joint venture between EXCO Resources Inc. and BG Group PLC, for approximately $910 million in cash and an equity interest in the new entity formed by Azure to serve as buyer. This deal will allow Azure to take over full ownership of a gas-production joint venture targeting reserves in East Texas and North Louisiana shale formations.

Energy Spectrum Capital will capitalize the new entity. Azure also has a debt commitment from JPMorgan to provide senior financing which will be used to partially fund the acquisition. The transactions are all expected to close in the fourth quarter of 2013.

Azure was founded in 2012 with the backing of Energy Spectrum Capital. The company focuses on gathering natural gas and delivering it through small-to-medium-sized pipelines to the major gas intrastate and interstate pipelines that run throughout North America.

The Porter Hedges team was led by Kevin Poli, Rob Reedy, and Joe Morrel. Bob Thomas provided assistance on the midstream aspects of the deal and with assistance from Deborah Ko. Other critical assistance came from Geoff Schultz, Ragna Henrichs, Kevan Richards, John Higgins and Beverly Young.