EagleClaw Midstream, a portfolio company of Blackstone Energy Partners, has entered into binding agreements to acquire Caprock Midstream Holdings from Energy Spectrum Capital and Caprock Midstream Management for $950 million.
The all-cash transaction is expected to close in 2018.
Caprock is a privately held midstream operator that provides gathering, processing, and disposal services for natural gas, crude oil, and produced water to producers in the Delaware Basin. Caprock’s assets are strategically located in the core of the southern Delaware Basin in Reeves and Ward counties. Caprock currently operates two natural gas processing facilities and will have 540 cubic feet per day (MMcf/d) of processing capacity pro forma for the completion of two additional facilities currently under construction. Caprock also operates almost 300 miles of gas, crude, natural gas liquids, and water gathering pipelines; 23 megabarrel (MBbls) of crude storage (expected to grow to over 60 MBbls within the next 12 months); and water disposal facilities with capacity of 210 MBpd (with an additional 375 MBpd of additional capacity planned and permitted). Caprock serves several highly active producers, which have made long-term dedications for natural gas, crude and/or water-related services totaling over 115,000 acres.
EagleClaw is the largest privately held midstream operator in the Permian’s Delaware Basin in West Texas. The company’s assets are strategically located in Reeves, Ward, and Culberson counties and include more than 550 miles of natural gas and natural gas liquids (NGL) pipelines and 720 million MMcf/d of processing capacity. EagleClaw serves many of the region’s leading oil and gas producers, who have committed long-term dedications of natural gas volumes to the company from over 310,000 acres. Since being acquired by Blackstone last year, EagleClaw has more than doubled its processed volumes and system capacity, increased the amount of acreage under long-term dedication by more than 55 percent, and entered into partnerships with Kinder Morgan and Targa to improve its customers’ takeaway options for natural gas and NGLs.