Crosstex Energy LP and Crosstex Energy, Inc. (collectively Crosstex) announced that Crosstex has signed definitive agreements with Devon Energy Corporation (DVN) to combine substantially all of Devon's US midstream assets with Crosstex's assets to form a new midstream business.
According to Crosstex, the new business will consist of two publicly traded entities, the Master Limited Partnership and a General Partner entity (Master Limited Partnership and General Partner, collectively the New Company).
Crosstex reported that the New Company is expected to have adjusted EBITDA of approximately $700 million in 2014, before synergies, and the deal is expected to be immediately accretive to both Crosstex and Devon. The Company stated that a name for the New Company will be announced prior to the closing of the transaction, which is expected in Q1 2014.