EX-99.1
8
d66792exv99w1.htm
EX-99.1
exv99w1
Exhibit 99.1
Regency Energy Partners, Alinda Capital Partners and GE Energy Financial
Services Announce Closing of Joint Venture
DALLAS, March 17, 2009 - Regency Energy Partners LP (Nasdaq: RGNC), Alinda Capital Partners LLC
("Alinda") and an affiliate of GE Energy Financial Services announced today the completed formation
and funding of a joint venture to finance and construct Regency's Haynesville Expansion Project, a
North Louisiana pipeline that will transport gas from the Haynesville Shale, one of the fastest
growing U.S. natural gas fields. Regency has already secured commitments from shippers for 84% of
the pipeline's capacity.
"We are pleased to close our joint venture and to continue to build the necessary infrastructure to
bring Haynesville gas to markets", said Byron Kelley, chairman, president and chief executive
officer of Regency. "By partnering with GE Energy Financial Services and Alinda, Regency has
improved our balance sheet, and we currently intend to maintain our existing quarterly 44.5 cent
per unit distribution during the construction of the project".
The initial 1.1 Bcf/d Haynesville Expansion Project will more than double Regency's existing
pipeline system in North Louisiana and is expected to be in-service by the end of 2009. Regency
will continue to develop and operate the system through this new joint venture.
Regency contributed to the joint venture its Regency Intrastate Gas System ("RIGS") in North
Louisiana, valued at $400 million, in exchange for a 38% general partnership interest in the joint
venture. An affiliate of GE Energy Financial Services and Alinda Capital Partners LLC, an
independent private investment firm specializing in infrastructure investments, contributed $126.5
million and $526.5 million in cash, respectively, to the joint venture in return for a 12% and a
50% general partnership interest, respectively. Regency also received a cash payment that was equal
to the total Haynesville Expansion Project capital expenditures paid through the closing date,
subject to certain adjustments.
About Regency Energy Partners
Regency Energy Partners LP (Nasdaq: RGNC) is a growth-oriented, midstream energy partnership
engaged in the gathering, contract compression, processing, marketing and transporting of natural
gas and natural gas liquids. Regency's general partner is majority-owned by an affiliate of GE
Energy Financial Services, a unit of GE (NYSE:
GE). For more information, visit the Regency Energy Partners LP Web site at
www.regencyenergy.com
.
About Alinda Capital Partners LLC
Alinda Capital Partners LLC is one of the world's largest investors in infrastructure through the
Alinda Infrastructure Funds, which are unlisted institutional funds with over $5 billion in capital
commitments. The Funds' investors are predominantly pension funds for public sector and private
sector workers and include some of the largest institutional investors in the world. Alinda has
ownership interests in airports, roads, rail, gas distribution and transmission, water and
wastewater, and other infrastructure assets that provide essential services to communities,
governments and businesses. Alinda's portfolio companies serve over 160 million customers annually.
For more information, visit
www.alinda.com
.
About GE Energy Financial Services
GE Energy Financial Services' experts invest globally with a long-term view, backed by the best of
GE's technical know-how and financial strength, across the capital spectrum in one of the world's
most capital-intensive industries, energy, to help their customers and GE grow. With $22 billion in
assets, GE Energy Financial Services is based in Stamford, Connecticut. For more information, visit
www.geenergyfinancialservices.com
.
This press release may contain forward-looking statements regarding Regency Energy Partners,
including projections, estimates, forecasts, plans and objectives. These statements are based on
management's current projections, estimates, forecasts, plans and objectives and are not guarantees
of future performance. In addition, these statements are subject to certain risks, uncertainties
and other assumptions that are difficult to predict and may be beyond our control. These risks and
uncertainties include changes in laws and regulations impacting the gathering, processing,
transportation and contract compression businesses, the level of creditworthiness of the
Partnership's counterparties, the Partnership's ability to access the debt and equity markets, the
Partnership's use of derivative financial instruments to hedge commodity and interest rate risks,
the amount of collateral required to be posted from time to time in the Partnership's transactions,
changes in commodity prices, interest rates, demand for the Partnership's services, weather and
other natural phenomena, industry changes including the impact of consolidations and changes in
competition, the Partnership's ability to obtain required approvals for construction or
modernization of the Partnership's facilities and the timing of production from such facilities,
and the effect of accounting pronouncements issued periodically by accounting standard setting
boards. Therefore, actual results and outcomes may differ materially from those expressed in such
forward-looking information.
Specifically, the success of Regency's Haynesville Expansion Project is subject to the successful
exploration and development of the Haynesville Shale, a new and emerging natural gas play. The
results of producers' exploratory drilling in new or emerging plays, such as the Haynesville Shale,
are more uncertain than drilling results in areas that are developed and have established
production. Since the Haynesville Shale has limited
production history, past drilling results in this area will be of limited help in predicting future
drilling results in the area. To the extent that producers in the area are unable to execute their
exploratory drilling and development plans in this area, the return on Regency's investment from
this project may not be as attractive as originally anticipated.
In light of these risks, uncertainties and assumptions, the events described in the forward-looking
statements might not occur or might occur to a different extent or at a different time than the
Partnership has described. The Partnership undertakes no obligation to update publicly or to revise
any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACTS:
Investor Relations:
Shannon Ming
Vice President, Investor Relations & Communications
Regency Energy Partners
214-840-5467
shannon.ming@regencygas.com
Media Relations:
Emily Bruce
HCK2 Partners
972-716-0500 x21
emily.bruce@hck2.com
Chris Beale
Alinda Capital Partners LLC
212-838-6403
chris.beale@alinda.com
Andy Katell
GE Energy Financial Services
203-961-5773

EX - 99 . 1 8 d66792exv99w1 . htm EX - 99 . 1 exv99w1 Exhibit 99 . 1 Regency Energy Partners , Alinda Capital Partners and GE Energy Financial Services Announce Closing of Joint Venture DALLAS , March 17 , 2009 - Regency Energy Partners LP ( Nasdaq : RGNC ) , Alinda Capital Partners LLC ( " Alinda " ) and an affiliate of GE Energy Financial Services announced today the completed formation and funding of a joint venture to finance and construct Regency 's Haynesville Expansion Project , a North Louisiana pipeline that will transport gas from the Haynesville Shale , one of the fastest growing U . S . natural gas fields . Regency has already secured commitments from shippers for 84 % of the pipeline 's capacity . " We are pleased to close our joint venture and to continue to build the necessary infrastructure to bring Haynesville gas to markets " , said Byron Kelley , chairman , president and chief executive officer of Regency . " By partnering with GE Energy Financial Services and Alinda , Regency has improved our balance sheet , and we currently intend to maintain our existing quarterly 44.5 cent per unit distribution during the construction of the project " . The initial 1.1 Bcf / d Haynesville Expansion Project will more than double Regency ' s existing pipeline system in North Louisiana and is expected to be in - service by the end of 2009 . Regency will continue to develop and operate the system through this new joint venture . Regency contributed to the joint venture its Regency Intrastate Gas System ( " RIGS " ) in North Louisiana , valued at $ 400 million , in exchange for a 38 % general partnership interest in the joint venture . An affiliate of GE Energy Financial Services and Alinda Capital Partners LLC , an independent private investment firm specializing in infrastructure investments , contributed $ 126.5 million and $ 526.5 million in cash , respectively , to the joint venture in return for a 12 % and a 50 % general partnership interest , respectively . Regency also received a cash payment that was equal to the total Haynesville Expansion Project capital expenditures paid through the closing date , subject to certain adjustments . About Regency Energy Partners Regency Energy Partners LP ( Nasdaq : RGNC ) is a growth - oriented , midstream energy partnership engaged in the gathering , contract compression , processing , marketing and transporting of natural gas and natural gas liquids . Regency 's general partner is majority - owned by an affiliate of GE Energy Financial Services , a unit of GE ( NYSE : GE ) . For more information , visit the Regency Energy Partners LP Web site at www.regencyenergy.com . About Alinda Capital Partners LLC Alinda Capital Partners LLC is one of the world 's largest investors in infrastructure through the Alinda Infrastructure Funds , which are unlisted institutional funds with over $ 5 billion in capital commitments . The Funds ' investors are predominantly pension funds for public sector and private sector workers and include some of the largest institutional investors in the world . Alinda has ownership interests in airports , roads , rail , gas distribution and transmission , water and wastewater , and other infrastructure assets that provide essential services to communities , governments and businesses . Alinda 's portfolio companies serve over 160 million customers annually . For more information , visit www.alinda.com . About GE Energy Financial Services GE Energy Financial Services ' experts invest globally with a long - term view , backed by the best of GE 's technical know - how and financial strength , across the capital spectrum in one of the world 's most capital - intensive industries , energy , to help their customers and GE grow . With $ 22 billion in assets , GE Energy Financial Services is based in Stamford , Connecticut . For more information , visit www.geenergyfinancialservices.com . This press release may contain forward - looking statements regarding Regency Energy Partners , including projections , estimates , forecasts , plans and objectives . These statements are based on management 's current projections , estimates , forecasts , plans and objectives and are not guarantees of future performance . In addition , these statements are subject to certain risks , uncertainties and other assumptions that are difficult to predict and may be beyond our control . These risks and uncertainties include changes in laws and regulations impacting the gathering , processing , transportation and contract compression businesses , the level of creditworthiness of the Partnership 's counterparties , the Partnership 's ability to access the debt and equity markets , the Partnership 's use of derivative financial instruments to hedge commodity and interest rate risks , the amount of collateral required to be posted from time to time in the Partnership 's transactions , changes in commodity prices , interest rates , demand for the Partnership 's services , weather and other natural phenomena , industry changes including the impact of consolidations and changes in competition , the Partnership 's ability to obtain required approvals for construction or modernization of the Partnership 's facilities and the timing of production from such facilities , and the effect of accounting pronouncements issued periodically by accounting standard setting boards . Therefore , actual results and outcomes may differ materially from those expressed in such forward - looking information . Specifically , the success of Regency 's Haynesville Expansion Project is subject to the successful exploration and development of the Haynesville Shale , a new and emerging natural gas play . The results of producers ' exploratory drilling in new or emerging plays , such as the Haynesville Shale , are more uncertain than drilling results in areas that are developed and have established production . Since the Haynesville Shale has limited production history , past drilling results in this area will be of limited help in predicting future drilling results in the area . To the extent that producers in the area are unable to execute their exploratory drilling and development plans in this area , the return on Regency 's investment from this project may not be as attractive as originally anticipated . In light of these risks , uncertainties and assumptions , the events described in the forward - looking statements might not occur or might occur to a different extent or at a different time than the Partnership has described . The Partnership undertakes no obligation to update publicly or to revise any forward - looking statements , whether as a result of new information , future events or otherwise . CONTACTS : Investor Relations : Shannon Ming Vice President , Investor Relations & Communications Regency Energy Partners 214 - 840 - 5467 shannon.ming@regencygas.com Media Relations : Emily Bruce HCK2 Partners 972 - 716 - 0500 x21 emily.bruce@hck2.com Chris Beale Alinda Capital Partners LLC 212 - 838 - 6403 chris.beale@alinda.com Andy Katell GE Energy Financial Services 203 - 961 - 5773
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