EagleClaw
Midstream Ventures, LLC (“EagleClaw”) announced today that the
company has entered into a definitive agreement to acquire PennTex
Permian, LLC (“PennTex Permian”) a wholly owned subsidiary of PennTex
Midstream Partners, LLC. Primarily located in Reeves County, Texas,
PennTex Permian’s assets include a cryogenic processing plant with the
capacity to process 60 million cubic feet of natural gas per day
(MMcf/d), approximately 90 miles of gathering pipeline and approximately
35 miles of condensate pipeline. PennTex Permian’s assets are supported
by long-term dedications of more than 75,000 acres from the region’s
leading producers. EagleClaw expects to complete the acquisition of
PennTex Permian in the third quarter.
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Aerial photo of the construction of EagleClaw Midstream’s new 200 MMcf/d cryogenic processing plant in Reeves County, Texas. (Photo: Business Wire)
EagleClaw will connect the PennTex system to its East Toyah System,
bringing EagleClaw’s current processing capacity to 120 MMcf/d and total
gathering pipeline to more than 200 miles served by nine field
compressor stations with a total of 20,000 horsepower of low- and
high-pressure compression. The combined systems serve producers in the
Permian’s Delaware Basin targeting stacked pay zones including the Upper
and Middle Wolfcamp, Bone Spring and the Avalon Shale formations (map
here).
Due to the performance of recent wells drilled in the area, EagleClaw
also announced that it has broken ground on the installation of an
additional cryogenic processing plant at its East Toyah Processing
Complex in Reeves County. These wells include the last two wells drilled
by Silverback
Exploration, LLC, each with initial production rates of
approximately 7 MMcf/d of natural gas and 820 barrels per day of crude
oil. The Toyah II plant will have the capacity to process 200 MMcf/d.
EagleClaw expects to bring the Toyah II plant online later this year,
bringing EagleClaw’s total processing capacity to 320 MMcf/d.
An 18-mile NGL line connects the East Toyah Processing Complex to Lone
Star’s West Texas Gateway Pipeline, which transports NGLs to the market
center at Mont Belvieu, Texas. The East Toyah complex also is connected
to Kinder Morgan’s El Paso 1600 Pipeline, and by October will have an
additional connect into ONEOK’s WestTex Transmission System, an
intrastate natural gas pipeline system that connects into the Roadrunner
Gas Transmission Pipeline (“Roadrunner”). Phase One of the Roadrunner
project is complete and currently serving markets in El Paso, Texas, and
Mexico.
CEO Perspective
“Given the Delaware Basin’s stacked pay potential, we believe Reeves
County may contain the largest inventory of profitable wells in the U.S.
We’re seeing great production and drilling results paired with economics
that make sense, even through the downturn,” said EagleClaw
President and CEO Bob Milam. “We’re in the customer service
business, so we’ve been working very hard to make sure that we have the
capacity that our producers need to move hydrocarbons to the best
markets. This acquisition and our new state-of-the-art plant bring
top-tier assets into our portfolio. These assets together with long-term
dedications of approximately 200,000 acres position EagleClaw as the
largest privately held midstream player in the Southern Delaware Basin.”
About EagleClaw Midstream, LLC
Headquartered in Midland, Texas, EagleClaw Midstream is a midstream
company focused on developing infrastructure opportunities in the
Permian Basin. EagleClaw provides natural gas producers with a wide
array of midstream services including gathering, compression, treating,
processing and transportation. EagleClaw is led by President and CEO Bob
Milam, Executive Vice President and COO Curtis Clark and Executive Vice
President of Commercial Blake Bixler. The company is supported by equity
commitments from EnCap Flatrock Midstream. Visit www.eagleclawmidstream.com
for more information.
About EnCap Flatrock Midstream
EnCap Flatrock Midstream provides value-added growth capital to proven
management teams focused on midstream infrastructure opportunities
across North America. The firm was formed in 2008 by a partnership
between EnCap
Investments L.P. and Flatrock Energy Advisors. Based in San Antonio
with offices in Oklahoma City and Houston, EnCap Flatrock is led by
Managing Partners and Founders William D. Waldrip, Dennis F. Jaggi and
William R. Lemmons, Jr. The firm manages investment commitments of $5.6
billion from a broad group of institutional investors. EnCap Flatrock is
currently making commitments to new management teams from EFM Fund III,
a $3 billion fund. For more information please visit www.efmidstream.com.
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