JP Energy Partners Acquires San Antonio Based Bentley Energy Corp. And Sonterra Energy Corp.
August 2, 2010
(August 2, 2010) San Antonio, Texas – On July 22, 2010, U.S. Bankruptcy Judge Leif M. Clark confirmed the reorganization plan that was filed by Bentley Energy Corp. and Sonterra Energy Corp. on May 7, 2010 following four months in Chapter 11 bankruptcy protection. The reorganization plan calls for JP Energy Partners LP to acquire both of the entities and to take over the operations immediately.
Bentley Energy Corp. has retail propane operations in the greater San Antonio area and The Rio Grande Valley under the name “Lone Star Propane” and currently has offices in San Antonio, Seguin, Harlingen and Donna. Effective immediately, the name Lone Star Propane will be changed to “Pinnacle Propane”.
Sonterra Energy Corp. develops and provides central gas service to communities through community propane systems. Sonterra Energy currently serves 18 communities (more than 1,400 customers) in the San Antonio and Austin areas through a community system. The name Sonterra Energy will no longer be used and will be changed to “Alliant Gas”. A community propane system is ideal for new developments where natural gas service is not available or feasible. Alliant Gas currently serves customers in well known communities such as Cordillera Ranch in Boerne and Lakeway in Austin. Alliant Gas will not only focus on its existing customers and communities, but will work with developers and builders to grow the business in new communities as well.
Collectively, the two companies have sold between 5 and 7 million gallons of propane per year the past three years. “We feel that with the management team and capital we are bringing to these companies, we can provide stability and a level of customer service that our customers haven’t seen over the past 3 years.” said J. Patrick Barley, President and CEO of JP Energy Partners. The entire acquisition of Bentley and Sonterra out of bankruptcy was about $9.2 million and JP Energy Partners has initially committed about $13 million of capital to focus on growing its position in the propane industry in Texas. Barley goes on to say “last winter was tough on many propane companies so we feel it’s important to come into the business well capitalized so we can show our customers that there will be no concerns about getting propane when they need it.” With no debt on the acquisitions of Bentley and Sonterra, and additional capital in reserve, JP Energy Partners is poised to immediately make an impact on the propane industry in Texas.
In addition to the acquisition of Bentley and Sonterra, JP Energy is already working on additional strategic acquisitions to grow their footprint in the propane business. Currently, LOI’s are already in effect for another company north of San Antonio as well as in the Lubbock area.
JP Energy Partners LP is an Irving, TX based Master Limited Partnership that was formed by CB Capital LLC. to pursue opportunities in the propane industry. The ownership and management team of JP Energy Partners brings extensive experience and a history of success in the energy business and the real estate development business.
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Posted: July 18, 2011