Regency Closes CDM Deal

Regency Energy Partners LP (Nasdaq: RGNC) has completed its acquisition of CDM Resource Partners LP, a Houston, Texas-based provider of turnkey natural gas contract compression services. The deal was valued at $655 million. CDM had been owned by management and Carlyle/Riverstone Global Energy & Power Fund II.


Regency Energy Partners LP (Nasdaq: RGNC) has completed its previously announced acquisition of Houston-based CDM Resource Management, Ltd. (“CDM”), a provider of natural gas compression services.  The transaction is valued at approximately $655 million, subject to certain adjustments.  The acquisition makes Regency the first major midstream master limited partnership to acquire a natural gas compression services firm, and the deal will be immediately accretive to cash available for distribution.

“We are pleased to kick off 2008 with the shared relationships, expertise and resources that the completion of this acquisition offers,” said James W. Hunt, chairman, president and chief executive officer of Regency.  “Together, Regency and CDM will now operate more than 700,000 horsepower of compression in Texas, Louisiana and Arkansas.”

“CDM has an experienced management team with a proven ability to deliver impressive results,” Hunt said.  “All three founders of CDM