Crosstex Energy companies to acquire Clearfield Energy

US-based Crosstex Energy LP and Crosstex Energy Inc, have agreed to acquire privately-held Clearfield Energy for $210m in cash.

Clearfield, a crude oil, condensate and water services company, moves around 30% of the oil production in Ohio and has operations in Ohio, Kentucky and West Virginia.

Crosstex president and chief executive officer Barry E. Davis said that the acquisition is a big step in the execution of the company’s strategy to grow and diversify its business, providing a new geographic footprint and expanded service offerings.

"Clearfield provides Crosstex with an entrance in the rapidly developing Utica Shale play, which we believe will be a strong, sustainable growth platform for us," Davis added.

Clearfield’s assets to be purchased include a 4,500 barrel per hour crude oil barge-loading terminal on the Ohio River, a crude oil rail loading terminal in Ohio and 200 miles of crude oil pipelines in Ohio and West Virginia

The crude oil rail loading terminal is expected to expand from the current 28,000 barrels per day facility to 56,000 barrels per day by the end of the year.

The company also has 100,000 barrels of above ground storage, six existing brine water disposal wells with two more under development, a fleet of trucks and more than 2,500 miles of unused right of way.

Crosstex Energy stated that the deal marks an important strategic step for the partnership into crude and condensate services.

The acquisition, slated for completion in July 2012, will be funded through a combination of debt and equity.