![Brazos Midstream Acquires Permian Gas Gathering Systems from Diamondback Energy](/sites/default/files/styles/hart_news_article_image_640/public/image/2021/11/brazos-midstream-acquires-permian-gas-gathering-systems-diamondback-energy.png?itok=9Kdz55Z8)
Brazos Midstream also announced the acquisition of the Pecos Gas Gathering System, which Brazos had operated in the southern Delaware Basin on behalf of Diamondback and Rattler since 2017. (Source: Hart Energy)
Brazos Midstream recently expanded its footprint in the Permian Basin with two significant transactions with Diamondback Energy Inc. and its midstream affiliate.
Headquartered in Fort Worth, Texas, Brazos is one of the largest private natural gas and crude oil midstream companies in the Delaware Basin of the Permian. However, on Nov. 3, the company said it has now expanded to the Midland Basin through the acquisition of Diamondback’s Mustang Springs Gas Gathering System, marking Brazos’ first acquisition on the Midland Basin side of the Permian.
The acquisition of the Mustang Springs Gas Gathering System located in the Northern Midland Basin was made through the company’s newly formed affiliate Brazos Midland. Diamondback reported net consideration of approximately $54 million from the sale of the Mustang Springs Gas Gathering assets.
“We are also very pleased to form Brazos Midland to complete the acquisition of a high-quality asset supported by Diamondback’s strong existing production and robust development plans, which provides a great platform in the core of the Midland Basin with tremendous potential for third-party growth,” Brazos CEO Brad Iles commented in a company release on Nov. 3.
The Mustang Springs Gas Gathering System currently serves Diamondback in central Martin County, Texas. Brazos plans to expand the system to serve both Diamondback and other producers’ “significant growth plans in the area,” according to the company release.
“We look forward to continued growth across a broader Permian platform,” Iles added in the release.
On Nov. 3, Brazos Midstream also announced the acquisition of the Pecos Gas Gathering System in the southern Delaware Basin from Diamondback Energy and its midstream affiliate Rattler Midstream.
Brazos has operated the Pecos Gas Gathering System on behalf of Diamondback and Rattler since 2017.
“The Pecos system is a perfect bolt-on acquisition for our existing Delaware Basin business and will allow Brazos to extend our reach to new producer customers,” Iles said.
In a separate release on Nov. 3, Rattler said it had closed the sale of its Pecos County gas gathering assets to Brazos Midstream for gross potential consideration of $93 million, including $83 million of cash at closing.
The Pecos Gas Gathering System will add an additional 150 miles of natural gas gathering pipeline and four associated compressor stations, complementing Brazos’ existing high pressure natural gas gathering system and cryogenic processing complex located in Reeves County, Texas. Brazos also plans to expand the Pecos system to provide additional gas gathering and processing services for Diamondback’s ongoing development plus connections to new third-party producers in the area.
According the release, Brazos Midstream’s Delaware Basin assets include over 800 miles of intrastate natural gas, NGL and crude oil gathering pipelines, a natural gas processing complex with 460 MMcf/d of processing capacity and approximately 75,000 barrels of crude oil storage. The company’s Delaware assets—located in Reeves, Ward, Loving, Winkler and Pecos counties, Texas—serve leading major and independent oil and gas producers, which together have made long-term dedications for over 500,000 acres.
Brazos Midstream had originally partnered at its formation with Old Ironsides Energy LLC but later agreed to sell its Delaware Basin subsidiaries to North Haven Infrastructure Partners II, an investment fund managed by Morgan Stanley Infrastructure, in 2018 for approximately $1.75 billion in cash.
Recommended Reading
Exxon’s Craig Morford Retires as VP of General Counsel, Secretary
2024-06-12 - Exxon’s board of directors has elected Jeff Taylor, who joined Exxon in May, to undertake Morford’s role.
ProPetro Adds Exxon Designee Volkov to Board
2024-05-14 - Alex Volkov is currently the transition executive tasked with planning the integration of Pioneer Natural Resources and Exxon Mobil.
Exxon Appoints Maria Jelescu Dreyfus to Board
2024-05-08 - Dreyfus is CEO and founder of Ardinall Investment Management, a sustainable investment firm, and currently serves on the board of Cadiz Inc. and Canada-based pension fund CDPQ.
Golden Pass LNG Likely Delayed After Engineering Firm Lays Off 4,400
2024-06-06 - An analyst estimated Golden Pass LNG’s in-service date could be set back six months and that the export terminal’s owners, Exxon Mobil and Qatar Energy, might try to retain workers formerly employed by Zachry Engineering.
Offshore Guyana: ‘The Place to Spend Money’
2024-07-09 - Exxon Mobil, Hess and CNOOC are prepared to pump as much as $105 billion into the vast potential of the Stabroek Block.