Ironwood II completes asset merger and assumes management of Nuevo Midstream Dos’ Eagle Ford assets
Ironwood Midstream Energy Partners II, LLC (Ironwood II) today announced it has significantly expanded its crude oil midstream footprint in the Eagle Ford Shale as a result of an asset combination with Nuevo Midstream Dos (Nuevo). Ironwood II and Nuevo are both financially backed by EnCap Flatrock Midstream.
The Ironwood II leadership team has assumed management of the Nuevo assets including approximately 100 miles of crude oil gathering pipeline in Lavaca, Gonzalez, and Fayette counties that feed the Lavaca Terminal, which consists of 300,000 barrels of crude oil storage and a six-bay truck station. The system also includes a 26-mile intermediate pipeline that moves volumes from the terminal to third-party transportation pipelines with access to refineries, petrochemical plants and export terminals on the Texas Gulf Coast.
From the Ironwood II CEO
“This strategic combination marks an important step for Ironwood as we continue to expand our midstream infrastructure for Eagle Ford producers, offering safe, consistent and competitive access to premium and growing export and industrial markets along the Texas Gulf Coast,” said Ironwood Chairman, President and CEO Mike Williams. “We are also extremely fortunate to have Randy Ziebarth join our board as part of this merger. The Nuevo team has built an excellent system and we look forward to continuing to operate it with integrity and reliability.”
From Encap Flatrock Midstream
“We are excited about the consolidation of these complementary Eagle Ford assets as it further positions them for growth and value creation,” said EnCap Flatrock Managing Partner Bill Waldrip. “The Nuevo team has a strong track record and EFM has enjoyed a long and successful partnership together. The team has built highly valuable relationships in the Eagle Ford and has done an excellent job commercializing these assets. I’ve personally known Mike and Randy for a very long time, and their collective skill sets, and deep roots and relationships will serve this combined platform well.”
Increased Footprint Details
As a result of the combination, Ironwood II now operates approximately 400,000 barrels per day (bpd) of crude oil throughput capacity and 410 million cubic feet per day (MMcf/d) of natural gas throughput capacity in the Eagle Ford region. The company operates 390 miles of crude oil and natural gas pipelines with 245,000 dedicated net acres.
Ironwood II’s strategic footprint in the Eagle Ford provides multiple connections to long-haul pipelines and premium access to key Gulf Coast markets. Crude oil interconnects include Plains All American Pipeline, Harvest Pipeline Company, NuStar Logistics L.P., EPIC Crude Oil Pipeline, Kinder Morgan, Gray Oak Pipeline, Flint Hills Resources, The San Antonio Refinery and Enterprise Products Pipeline. Natural Gas interconnects include DCP Midstream, Energy Transfer and Enterprise.
In the Permian Basin, Ironwood operates a crude oil gathering system in Midland County with 40,000 bpd of throughput capacity that delivers to Centurion Pipeline.
Source: Company Press Release