LM Energy Holdings has entered into definitive agreements to sell certain subsidiaries and assets related to its Touchdown Crude Oil Gathering System in Eddy and Lea Counties in New Mexico. The transaction is expected to close during the fourth quarter of 2023.
LM began the development of its crude oil gathering business in 2019 and has constructed more than 130 miles of pipelines and two terminals with 136,000 barrels of combined storage capacity. The company grew volumes from zero to approximately 75,000 barrels per day on a 100 percent greenfield basis.
LM has plans to continue expanding its gas gathering systems in Eddy and Lea Counties in New Mexico. These currently provide low-pressure gathering, dehydration, compression, liquids handling and high-pressure gathering services. The company has constructed more than 70 miles of pipelines to date and will commission its sixth compressor station during the fourth quarter of 2023.
“Gas volumes in the Northern