EnLink Midstream Partners and EnLink Midstream (together EnLink) have signed an agreement to purchase Coronado Midstream for about $600m.

Coronado Midstream, which owns natural gas gathering and processing facilities in the Permian Basin, operates three cryogenic gas processing plants and a gas gathering system in the North Midland Basin.

Additionally, the company operates about 270 miles of gathering pipelines, has 175 million cubic feet per day (MMcf/d) of processing capacity and 35,000 horsepower of compression.

Construction is underway on a further 100 MMcf/d of processing capacity and gathering system expansions of the Coronado system.

EnLink intends to connect Coronado system with Bearkat system in order to create a multi-county gas gathering and processing system.

EnLink president and chief executive officer Barry Davis said: "The Coronado assets are located in the core of the North Midland Basin and are supported by the region’s most focused and active producers.

"By combining Coronado with our recent LPC acquisition and our existing footprint, we have the opportunity to create tremendous value for our producer customers by linking our gas gathering, processing and crude oil logistics operations to provide a full-service midstream solution."

The increased activity around Coronado’s system is expected to generate significant accretion in EnLink’s distributable cash flow per unit over the next few years.