Lucid Energy Group Announces Long-Term Agreement with Marathon Oil Permian LLC and New Cryogenic Processing Plant in Southeast New Mexico

Lucid
Energy Group (“Lucid”) today announced the company has executed a
new long-term natural gas gathering and processing agreement with
Marathon Oil Permian LLC, a subsidiary of Marathon Oil Company (NYSE:
MRO) (“Marathon”). Under the new agreement, Lucid now provides midstream
services to Marathon under a long-term acreage dedication for all of
Marathon’s operated acreage in Lea County, New Mexico, and a portion of
Marathon’s operated acreage in Eddy County, New Mexico. To serve
Marathon’s growing production, Lucid will significantly expand its
existing gathering and compression infrastructure network.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180905005096/en/

Lucid Energy Group's Red Hills Natural Gas Processing Complex in Lea County, New Mexico. (Photo: Business Wire)

Lucid also announced it is preparing to commission a new cryogenic
processing plant at its Red Hills Natural Gas Processing Complex in Lea
County. Known as Red Hills III, the new plant has the capacity to
process 200 million cubic feet per day (MMcf/d) and is expected to come
into service in October 2018. Red Hills III will provide additional
processing capacity in support of near-term production from new
commercial agreements, including the Marathon agreement. The plant is
Lucid’s fifth cryogenic plant in southeast New Mexico and will bring
Lucid’s total processing capacity in the Delaware Basin to 750 MMcf/d.

“Marathon is a premier producer and a valued customer that we are
fortunate to serve,” said Lucid CEO Michael J. Latchem. “We are excited
to see results from the world-class Delaware Basin continue to improve
because of talented operators like Marathon. We are highly focused on
staying in front of our customers’ drilling programs with new
infrastructure and facilities that preserve the high standard of service
producers have come to expect from Lucid.”

About Lucid Energy Group

Lucid Energy Group is the largest privately held natural gas processor
in the Delaware Basin, providing the full range of gas midstream
services to more than 50 customers in New Mexico and West Texas. Lucid
is supported by growth capital commitments from a joint venture formed
by Riverstone Global Energy and Power Fund VI, L.P., an investment fund
managed by Riverstone
Holdings LLC (“Riverstone”), and investment funds managed by the
Merchant Banking Division of The Goldman
Sachs Group Inc. (“Goldman Sachs MBD”). Please visit www.lucid-energy.com
for more information.

About Riverstone Holdings LLC

Riverstone Holdings LLC is an energy and power-focused private
investment firm founded in 2000 by David M. Leuschen and Pierre F.
Lapeyre, Jr. with approximately $38 billion of capital raised.
Riverstone conducts buyout and growth capital investments in the
exploration & production, midstream, oilfield services, power and
renewable sectors of the energy industry. With offices in New York,
London, Houston and Mexico City, Riverstone has committed over $37
billion to more than 150 investments in North America, Latin America,
Europe, Africa, Asia and Australia. Visit www.riverstonellc.com for
more information.

About Goldman Sachs Merchant Banking Division

Founded in 1869, The Goldman Sachs Group, Inc. is a leading global
investment banking, securities and investment management firm. Goldman
Sachs Merchant Banking Division is the primary center for the firm’s
long-term principal investing activity. With nine offices across seven
countries, Goldman Sachs MBD is one of the leading private capital
investors in the world with equity and credit investments across
corporate, real estate, and infrastructure strategies. Since 1986, the
group has invested approximately $180 billion of levered capital across
a number of geographies, industries and transaction types.

View source version on businesswire.com: https://www.businesswire.com/news/home/20180905005096/en/

News by QuoteMedia

www.quotemedia.com