Align will add over 290km of active pipeline to its present footprint across Panola, Rusk, and Harrison Counties
Tailwater Capital-backed Align Midstream Partners II and Elevate Midstream Partners have merged their respective East Texas assets in US.
Dallas-based midstream company Align will operate the combined asset base, effective instantly.
Align will add over 290km of pipeline to its present footprint across Panola, Rusk, and Harrison Counties.
The merged asset will provide the company with extra processing and compression capabilities. The combined asset has an average daily volume of over 300 MMSCFD.
Align Midstream Partners II CEO Fritz Brinkman said: “We are excited about this combination and the opportunity to extend our platform in an area of the basin we know well.
“Our number one priority has always been and will continue to be providing our producer customers in East Texas with best in-class service to facilitate their long-term growth plans, and we believe this combination and enhanced scale allows us to do just that.”
The merger will additionally expand Align’s customer base by adding many East Texas producers who are active in both the Haynesville and Cotton Valley formations.
Elevate secures $150m equity commitment from Tailwater Capital
Elevate team has also secured equity commitment of $150m from Tailwater Capital to create Elevate Midstream Partners II to further profit from midstream asset acquisitions and greenfield buildout opportunities.
Tailwater Capital co-founder and managing partner Jason Downie said: “We are pleased to announce the combination of Align and Elevate’s East Texas asset bases.
“This strategic combination expands Align’s East Texas asset footprint into areas in which the company already has unmatched expertise and familiarity – and provides Align with the ability to grow and enhance the scale at which it can service producers, while simultaneously positioning Elevate to execute on midstream opportunities in what we believe to be an attractive market.”
In September 2017, Tailwater Capital had agreed to divest Align Midstream to Enable Midstream Partners for a sum of nearly $300m.