M&A Picks Up Steam in the Midstream

Midland, Texas-based EagleClaw Midstream Ventures LLC is buying PennTexas Permian LLC in a mergers and acquisitions (M&A) transaction that could grow EagleClaw’s workforce in the West Texas Delaware basin from 30 workers to 47.

In the deal announced Aug. 4, EagleClaw said in a news statement that the assets for purchase include a cryogenic processing plant with the capacity to process 60 million cubic feet of natural gas per day (MMcfd), about 90 miles of fathering pipeline and 35 miles of condensate pipeline. The assets are supported by long-term contracts on production from more than 75,000 acres. EagleClaw declined to disclose the dollar value of the transaction. The deal is expected to close in the third quarter.

EagleClaw will connect the PennTex system to its East Toyah System, bringing EagleClaw’s current processing capacity to 120 MMcfd 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, according to the statement.

All of this means the field workers at PennTex are invited to stay on and work with EagleClaw, the buyer’s CEO Bob Milam told Rigzone.

“We will be making offers to employ every PennTex Permian field employee. It is our understanding that PennTex's Houston employees will remain focused on their efforts in Louisiana. There are 17 PennTex field employees working in the Delaware Basin ... we hope to be at 47 at closing," he said.

The EagleClaw buy joins a growing list of recent midstream mergers and acquisitions deals. Energy Transfer Partners and Sunoco Logistics announced this week they would sell a minority stake in the Bakken Pipeline Project to Enbridge and Marathon Petroleum for $2 billion.  

An award-winning journalist, Deon has reported on energy, business and politics for almost 20 years. Email Deon at deon.daugherty@rigzone.com


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


Our Privacy Pledge

More from this Author
Deon Daugherty
Senior Editor | Rigzone
 -  OpEd: OPEC Production Cuts Fail, Marke... (Jun 27)
 -  Canada Oil, Gas Assets Beat US in Clas... (Jun 20)
 -  BLOG: Day Of Reckoning in 2018? US Rig... (Jun 20)
 -  Mexico Whets Foreign Oil, Gas Appetite... (Jun 19)
 -  BLOG: Federal Court Ruling Resurrects ... (Jun 15)

Most Popular Articles

From the Career Center
Jobs that may interest you
Area Manager, Colorado
Expertise: Business Development|Construction Manager|Project Management
Location: 81303
Manager Gas Supply
Expertise: Asset Management|Business Development|Purchasing
Location: Midland, TX
Business Development Professional
Expertise: Business Development
Location: Houston, TX
search for more jobs

Brent Crude Oil : $45.83/BBL 0.63%
Light Crude Oil : $43.38/BBL 0.86%
Natural Gas : $3.03/MMBtu 3.44%
Updated in last 24 hours