Blackstone to Buy Permian Basin Pipelines for $2 Billion
(Bloomberg) -- Blackstone Group LP agreed to acquire pipeline company EagleClaw Midstream Ventures LLC for about $2 billion in cash, the latest deal in the prolific Permian Basin of West Texas.
The transaction, which includes more than 375 miles (603 kilometers) of natural gas pipes, is expected to close by the end of July. EagleClaw will retain its name and operate as a Blackstone portfolio company, with the leadership team remaining intact, according to a statement Monday. EagleClaw’s financial sponsor is a partnership between EnCap Investments LP and Flatrock Energy Advisors LLC, called Encap Flatrock Midstream.
Blackstone joins a parade of pipeline buyers in the Permian Basin amid a drilling rebound spurred by higher oil prices. While most producers are targeting oil, it often comes mixed with substantial natural gas. The total number of rigs drilling in the nation’s biggest crude field rose to 339 last week, the most in more than two years, according to Baker Hughes Inc.
“Blackstone has a deep understanding of the compelling fundamentals of the upstream and midstream economics in the Permian, an outstanding reputation as an investor in the energy sector and the scale to take EagleClaw to the next level,” Bob Milam, EagleClaw’s chief executive officer, said in Monday’s statement.
EagleClaw had been exploring a sale for months, according to people familiar with the process. Monday’s deal follows the announced purchase earlier this month of 500 miles of Permian crude pipelines by NuStar Energy LP and Targa Resources Corp.’s acquisition of pipelines and processing systems in the Permian for as much as $1.5 billion, unveiled in January.
Jefferies LLC served as EagleClaw’s financial adviser.
To contact the reporter on this story: Jim Polson in New York at jpolson@bloomberg.net To contact the editors responsible for this story: Lynn Doan at ldoan6@bloomberg.net Christine Buurma, Tina Davis
WHAT DO YOU THINK?
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.
- Blockchain Demands Attention in Oil and Gas
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- CNPC Opens Sea-Land Oil Storage and Transport Facility in Bangladesh
- Oman Sees Increasing Ship-to-Ship Transfers of Russian Oil Bound for India
- US Govt Makes Record Investment of $6B for Industrial Decarbonization
- Perenco Still Searching for Missing Person After Platform Incident
- Eni, Fincantieri, RINA Ink Deal on Maritime Decarbonization
- Oil Falls as US Inventories Increase
- Czech Utility CEZ Bucks Weaker Prices, Demand to Log Record Annual Profit
- Ithaca Energy Studies Deal for Eni's UK Upstream Assets
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- UK Grid Operator Receives Aid to Advance Rural Decarbonization
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call