Contract Compression
In January 2008, Regency Energy acquired CDM Resource Management LLC. CDM provides customers with turn-key natural gas contract compression services to maximize their natural gas and crude oil production, throughput, and cash flow in Texas, Louisiana, and Arkansas.
CDM’s integrated solutions include a comprehensive assessment of a customer’s natural gas contract compression needs and the design and installation of a compression system that addresses those particular field wide needs. CDM is responsible for the installation and ongoing operation, service, and repair of compressors, which Regency modifies as necessary to adapt to our customers’ changing operating conditions.
CDM provides Regency with stable, fee based cash flows, a source of long-term organic growth projects, and synergies with the our existing operations. CDM’s experienced management team has demonstrated an ability to deliver strong organic growth since its inception.
Contract Compression Operations
The natural gas contract compression services Regency provides, subsequent to our acquisition of CDM, include designing, sourcing, owning, insuring, installing, operating, servicing, repairing and maintaining compressors and related equipment for which we guarantee customers 98 percent mechanical availability for land installations and 96 percent mechanical availability for over-water installations.
Regency focuses on meeting the complex requirements of field-wide compression applications, as opposed to targeting the compression needs of individual wells within a field. These field-wide applications include compression for natural gas gathering, natural gas lift for crude oil production and natural gas processing. Regency believes that we improve the stability of our cash flow by focusing on field-wide compression applications because such applications generally involve long-term installations of multiple large horsepower compression units. Our contract compression operations are primarily located in Texas, Louisiana and Arkansas.
