EagleClaw Midstream Ventures has signed an agreement to acquire Texas-based PennTex Permian from PennTex Midstream Partners for undisclosed amount.
As part of the deal, EagleClaw will acquire all of the PennTex Permian assets which include a cryogenic processing plant with 60 million cubic feet of natural gas per day (MMcf/d) processing capacity; approximately 90 miles of gathering pipeline; and approximately 35 miles of condensate pipeline.
The assets are backed by long-term deals on production from more than 75,000 acres.
EagleClaw president and CEO Bob Milam said: “Given the Delaware Basin’s stacked pay potential, we believe Reeves County may contain the largest inventory of profitable wells in the US. We’re seeing great production and drilling results paired with economics that make sense, even through the downturn.
“This acquisition and our new plant bring top-tier assets into our portfolio. These assets together with long-term dedications of approximately 200,000 acres position EagleClaw as the largest privately held midstream player in the Southern Delaware Basin.”
The deal is scheduled to be completed in the third quarter.
The acquisition allows EagleClaw to connect the PennTex system to its East Toyah System, increasing its processing capacity to 120 MMcf/d and reaching total gathering pipeline to more than 200 miles.
Meanwhile, EagleClaw said it has broken ground on the installation of an additional cryogenic processing plant at its East Toyah Processing Complex in Reeves County.
Privately-held company PennTex Midstream Partners is engaged in owning, operating, acquiring and developing midstream energy infrastructure assets in oil and natural gas basins.
The firm provides natural gas gathering and processing and residue gas and natural gas liquids transportation services to producers.
Image: EagleClaw Midstream’s new 200 MMcf/d cryogenic processing plant in Reeves County, Texas. Photo: courtesy of Business Wire/ EagleClaw Midstream Ventures, LLC.