Company Background TexStar's management has decades of experience operating midstream assets in South Texas and has owned and operated over 1,500 miles of pipeline and two large gas processing plants. TexStar has a strong track record of growth, having previously expanded a pipeline system from 40 miles to 1,500 miles in 14 months, increasing throughput from 15,000 Mcf/d to 160,000 Mcf/d. TexStar previously sold a portion of its assets valued at approximately $350MM to Regency in 2006 and is currently in the process of building a strong midstream presence in S. Texas.
Company Overview Currently, TexStar is rapidly expanding its 125 mile low pressure gathering system in Frio and LaSalle Counties in Texas in order to handle future expected Eagle Ford and Buda gas volumes. Treating capacity is being increased and the sour gas capacity will be over 30 MMCFD by the end of the first quarter 2011. In addition, over 40 miles of new gathering lines are currently being planned which will also be in place by December. TexStar will be installing over 2,000 hp in additional compression to the current 1,400 hp. TexStar is routing a gas export line to the Three Rivers area. This will access multiple pipelines with gas processing capabilities and new gas markets. This pipeline will also provide access for producers in Atascosa and McMullen Counties. Additionally, TexStar is planning and acquiring lines to the Houston area. The oil gathering system will allow for not only lower gravity sour Eagle Ford crude, but also high gravity Eagle Ford condensate. TexStar plans on having this line in service in the second quarter of 2011.
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