WhiteWater Midstream and its financial sponsors, Denham Capital Management and Ridgemont Equity Partners, have entered into definitive agreements for the sale of WhiteWater to funds managed by First Infrastructure Capital Advisors.
As part of the transaction, First Infrastructure Capital will acquire WhiteWater, including its 60 percent stake in Agua Blanca, a Delaware Basin intrastate natural gas pipeline system. Contemporaneous with this transaction, First Infrastructure Capital also entered into definitive agreements to acquire WPX Energy’s 20 percent ownership stake in Agua Blanca. WhiteWater management will remain with the asset and is committed to growing Agua Blanca to service its customer base. Closing is expected in the first quarter of 2019 and is subject to customary approvals and closing conditions.
Agua Blanca is a natural gas residue pipeline servicing the Delaware Basin. The system consists of roughly 90 miles of 36-inch diameter pipeline and 70 miles of smaller diameter pipeline crossing portions of Culberson, Loving, Pecos, Reeves, Ward and Winkler counties. The initial capacity is roughly 1.4 Bcf/d with significant expansion plans under way. The asset is supported by multiple, substantial, long-term, take or pay contracts. The Agua Blanca system has a multitude of direct downstream connections which provide shippers on the system access to multiple markets.
