El Dorado Gas & Oil's South Texas plant hits market after bankruptcy - San Antonio Business Journal

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Months after filing for bankruptcy and a series of asset auctions, a gas plant in South Texas is taking purchasing offers.

A South Texas gas gathering and processing plant is available for purchase months after its operator filed for Chapter 11 bankruptcy.

The plant, which was previously operated by the Gulfport-based national energy services firm El Dorado Gas & Oil Inc., is now accepting purchase offers. This is one of the final steps in El Dorado's Chapter 11 bankruptcy case filed last December in the U.S. Bankruptcy Court for the Southern District of Mississippi.

Back in July, it was announced that the companies handling the court-ordered sale of El Dorado's equipment would be Tiger Group and Liquidity Services. Both of these companies specialize in asset valuation and liquidation.

El Dorado owned equipment at 37 different locations, mainly in Mississippi and Texas, but also spanning across Alabama, Louisiana, Nevada, North Dakota, Ohio, Oklahoma, Tennessee, Virginia, Wyoming and several other locations.

Since Tiger Group and Liquidity have been involved in the case, there have been a series of auctions that have resulted in the sale of the assets at each of these locations.

"Proximate to the productive Eagle Ford Shale, this asset represents a strong opportunity for midstream companies with existing or prospective South Texas operations," Chad Farrell, managing director for Tiger Commercial & Industrial, said in a press release. "We are accepting offers for the entirety of the facility, which is in good condition and available for immediate inspection, as well as the 17.11-acre tract of land in DeWitt County."

At its peak, the plant can process 60 million standard cubic feet of gas and produce 4,500 barrels of oil per day. The gas is processed by a single train that includes equipment such as a slug catcher, H2S treating unit, dehydration system and metering.

The last year has seen significant growth in the purchase of gas plants across the Eagle Ford Shale. In early 2024, CPS Energy also bought two natural gas plants in Corpus Christi and one in Laredo from Talen Energy Corporation. The purchase of these plants serves as a stepping stone in CPS Energy's broader plan to ultimately retire outdated coal and gas units and begin implementing cleaner energy production through solar, wind and energy storage.