Crosstex Energy, L.P. (XTEX)‘s acquisition of Clearfield Energy, Inc. places the company at the front end of development in the Utica shale and and also gives XTEX access to Marcellus shale activity, reflecting the company’s strategy of building off of a platform in a growing area or shale, says Michael J. Garberding, Executive Vice President and CFO of Crosstex Energy, L.P.
“The key to the Clearfield acquisition is that it puts us on the front end of the development of the Utica shale, as well as gives us access to Marcellus shale activity. Now we have access to pipelines, barges rails and trucks in the region so we’re able to provide producers with the optionality to move the products to market quickly, because we have the right assets, the infrastructure and the employees in place,” Garberding said.
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Having the infrastructure will then lead to additional opportunities for new investments and the potential to use their existing assets to create a broader footprint in the region and play a key role in moving crude and condensate from the Utica shale, Garberding says.
“Our plan in the Utica and Marcellus shales is similar to how we built out assets in the Barnett shale in North Texas or in the Haynesville shale and other formations in Louisiana where we took an original platform and built off of it…We believe long term that the Utica will be a great production opportunity where we will play a key role in moving crude and condensate for our customers,” Garberding said.