Blackstone to acquire EagleClaw Midstream for $2 billion
Blackstone Energy Partners and Blackstone Capital Partners have agreed to buy EagleClaw Midstream Ventures LLC, a portfolio company of EnCap Flatrock Midstream, for $2 billion. The all-cash deal is expected to close by the end of July and includes $1.25 billion in stapled debt financing.
EagleClaw’s assets are in Reeves, Ward, and Culberson counties in Texas, part of the Permian’s Delaware basin, and include more than 375 miles of natural gas gathering pipelines and 320 MMcfd of processing capacity with an additional 400 MMcfd under construction. Included in the deal are the Toyah and Pecos systems.
The Toyah system includes more than 185 miles of gas gathering pipeline; five field compressor stations with 33,000 hp in low-pressure compression; and the 60-MMcfd Toyah I and 200-MMcfd Toyah II cryogenic processing plants at the East Toyah gas processing complex.
The Pecos system was acquired by EagleClaw in its August 2016 purchase of PennTex Permian LLC. It includes a 60-MMcfd cryogenic processing plant, 100 miles of gathering pipeline, and four field compressor stations. EagleClaw has purchased and begun design on the 200-MMcfd Pecos II cryogenic processing plant, which is expected in service later this year.
EagleClaw’s customers have long-term dedications of gas volumes from more than 220,000 acres. Those producers target stacked pay zones including the Upper and Middle Wolfcamp, Bone Spring, and Avalon shale formations.
EagleClaw will retain its name and operate as a Blackstone portfolio company. Its leadership team and the majority of the company’s employees will remain in their current roles and are investing alongside Blackstone in the deal.
