Dallas-based EnLink Midstream Partners LP (NYSE: ENLK) completed the acquisition of Coronado Midstream Holdings LLC with general partner EnLink Midstream LLC (NYSE: ENLC), the companies said March 16.
The $600 million transaction was for natural gas gathering and processing facilities that Coronado owns in the Permian Basin.
The assets include three cryogenic gas processing plants with a capacity of about 175 million cubic feet per day (MMcf/d) and a 270-mile gas gathering pipeline system in the North Midland Basin.
Construction is underway on an additional 100 MMcf/d gas processing plant and gathering system expansions.
EnLink plans to connect the Coronado and Bearkat gas gathering pipeline systems to create a multicounty rich-gas gathering and processing system that will include multiple delivery points.
With this acquisition, EnLink now owns and operates about 360 miles of gas gathering pipelines, about 300 MMcf/d of processing capacity and crude trucking and logistics services extending through seven counties in the Midland Basin’s core, the companies said.
Barry E. Davis, president and CEO of Enlink, said that the Permian is an important growth area for the companies.
Midland, Texas-based Coronado Midstream Holdings LLC was founded by a group of independent producers and partners including Reliance Energy, Wexford Capital LP, Gulfport Energy Corp. (NASDAQ: GPOR), Wallace Family Partnership LP and Ted Collins Jr.
Recommended Reading
US Republican Attorneys General Sue to Stop EPA's Carbon Rule
2024-05-09 - The rule, finalized by President Joe Biden's administration last month as part of an effort to combat climate change, was challenged in three lawsuits filed in the U.S. Court of Appeals for the District of Columbia Circuit.
Belcher: Brace for Onslaught of New Biden Regulations
2024-05-22 - A slew of rulemakings, executive orders and policy decisions affecting energy are headed this way.
Mexico Presidential Frontrunner Likely to Continue Reliance on US Gas
2024-05-23 - Mexico’s leading presidential candidate Claudia Sheinbaum is likely to continue with the current policies of Mexican President AMLO, likely meaning a continued reliance of U.S. imported piped-gas.
Analyst: Energy Companies Should Prepare for Tighter Methane Regulations
2024-05-24 - Regardless of election’s outcome, investors will take emission reduction plans into consideration.
Supreme Court’s Uinta Basin Rail Case Raises Stakes for LNG, Pipelines
2024-07-10 - The lawsuit, involving crude transport via railway in the Uinta Basin, is part of a larger intragovernmental fight that could have implications for how FERC decides pipeline and LNG plant permitting.