PE Firm to Spend $3.6B Cash for Oryx Midstream
Concho Resources Inc., Quantum Energy Partners, Post Oak Energy Capital and WPX Energy, as well as other investors, have entered into an agreement to sell Oryx Midstream to NY-based private equity firm Stonepeak Infrastructure Partners for $3.6 billion cash, associated companies announced Tuesday.
Oryx, the largest privately-held midstream crude operator in the Permian, owns and operates a crude oil gathering and transportation system underpinned by nearly one million acres.
The system has 2.1 million barrels of storage and 1,200 miles of pipeline spanning eight counties in Texas and two in New Mexico. After completing construction of the remaining part of the system, Oryx will have more than 900,000 barrels per day of transportation capacity in the Delaware Basin.
“As we begin our next chapter and new partnership with Stonepeak, we look forward to the operational and capital support they will provide our team as we continue to aggressively grow our footprint in the Permian Basin,” Oryx CEO Brett Wiggs said in a company statement. “Most importantly, we are fortunate to have the opportunity to lead Oryx as we enter this next growth stage, maintaining strong relationships with our customers, and continuing to provide the highest level of service.”
Concho, which is based in Midland, Texas, owns a 23.75 percent equity interest in Oryx and is set to receive $300 million after the deal is finalized.
Once the deal is closed, Oryx will keep its name and continue to be headquartered in Midland, Texas. Its leadership team, led by Wiggs and CFO and executive vice president of business development Karl Pfluger, will remain in their current roles.
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.
Senior Editor | Rigzone