EnLink Midstream Partners, today announced that its subsidiary has acquired a 50-percent ownership interest in the Deadwood natural gas processing facility from a subsidiary of Apache Corporation (NYSE: APA) (“Apache”). The cost of the accretive acquisition was approximately $40 million.
The facility is located in Glasscock County, Texas in the Permian Basin. Pursuant to a 2011 agreement, EnLink and Apache jointly funded the development of a new-build processing facility in which each company held a 50-percent undivided ownership interest. EnLink managed the plant’s initial construction and has operated the facility since its startup. The plant has a capacity of 58 million cubic feet per day (MMcf/d), and is currently processing approximately 45 MMcf/d. The acquisition brings EnLink’s net processing capacity in the Permian Basin to 343 MMcf/d, excluding the Riptide processing plant, which is currently under construction and will add another 100 MMcf/d of processing capacity in the Midland Basin.
“We consider the Deadwood facility to be an important piece of our growing infrastructure in the Permian Basin,” said Barry E. Davis, EnLink Midstream President and Chief Executive Officer. “By obtaining full ownership of the Deadwood processing facility, EnLink is able to enhance its presence in the Midland Basin, which is one of the most economic regions for oil and gas production in the U.S. We remain confident in our ability to execute on additional growth opportunities from our diverse platform of assets and services in this key growth region.”
Source: EnLink Midstream Partners
Date: Nov 16, 2015