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.
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