Southcross Energy Partners, L.P. Restructuring Plan Confirmed by Court

Southcross Energy Partners, L.P. (SXEEQ) (“Southcross” or “the Company”) today announced that the United States Bankruptcy Court for the District of Delaware (the “Court”) has confirmed the Company’s Plan of Reorganization. The Company expects to successfully emerge from Chapter 11 by the end of the month.

Through the court-supervised process, the Company has completed the sales of its natural gas pipeline network in Corpus Christi, Texas and pipelines and related assets in Mississippi and Alabama and strengthened its financial position by using the proceeds of the sales to significantly reduce its debt. Additionally, as previously announced in November 2019, Southcross acquired the Lancaster Gathering and Treating System from Southcross Holdings LP. 

The Company is poised to emerge reorganized around its high-quality gathering and processing business with facilities in the Eagle Ford Shale region. The go-forward Company’s operations now include the Lone Star and Woodsboro gas processing plants, the Bonnie View fractionation facility and the Lancaster and Valley Wells gathering and treating systems.

“The Court’s confirmation of our Plan positions us to emerge as a stronger, more profitable standalone gathering and processing business,” said James W. Swent III, President and Chief Executive Officer of Southcross. “We are moving forward with a strengthened financial position and facilities that are strategically located in the Eagle Ford Shale region. We are excited about the opportunities we see to reinvest in the business, build out our capabilities and drive growth through our complementary suite of gas gathering, processing, treating, fractionation and marketing of residue gas and NGL products. We look forward to emerging and remain focused on working safely to provide customers the high-quality services they expect from us.”

Swent added, “Thanks to the incredible efforts of our team members, we were able to provide our customers uninterrupted service and achieve a number of significant operating milestones, including an outstanding safety performance for a period of 15 consecutive months of zero recordable incidents. We thank our employees for their hard work and commitment to safety throughout this process. On behalf of the entire Southcross team, I also want to express our gratitude to our customers, suppliers and business partners for their continued support over the past several months.”

Upon emergence, Southcross will become a privately held company and its units will no longer be listed on any public market.

Additional Information About the Court-Supervised Process

Additional information about the court-supervised process is available by calling the Company’s claims agent, KCC, at (866) 967-0671 (US/Canada) or (310) 751-2671 (International). Court filings and other information related to the court-supervised proceedings are available at www.kccllc.net/southcrossenergy.

Davis Polk & Wardwell LLP and Morris, Nichols, Arsht & Tunnell LLP are serving as legal counsel to Southcross, Alvarez & Marsal is serving as restructuring advisor and Evercore is serving as financial advisor.

About Southcross Energy Partners, L.P.

Southcross Energy Partners, L.P. is a master limited partnership that provides natural gas gathering, processing, treating, compression and transportation services and NGL fractionation and transportation services. It also sources, purchases, transports and sells natural gas and NGLs. Its assets are located in South Texas near the Eagle Ford Shale region and include two cryogenic gas processing plants, two Sour Gas treating plants and a fractionation facility, and approximately 2,500 miles of pipeline. The South Texas assets are located in or near the Eagle Ford shale region. Southcross is currently headquartered in Dallas, Texas.

Contact:

Mallory Biegler
mallory.biegler@southcrossenergy.com
(214) 979-3714