Salt Creek Midstream, a portfolio company owned by funds managed by the Private Equity Group of Ares Management and ARM Energy has secured a four-year, $650m term loan through Deutsche Bank.
Image: Onshore drilling. Photo: courtesy of Stuart Miles/Freedigitalphotos.net.
The proceeds will fund the continuing development and expansion of Salt Creek’s business in the Delaware Basin, specifically, the completion of a second 200 Mmcf/d cryo processing plant and gas pipelines; crude gathering and terminalling infrastructure growth; and expansion of Salt Creek’s water gathering and disposal business.
ARM Energy CEO Zach Lee said: “We are extremely pleased that Deutsche Bank has again chosen to underwrite our Salt Creek franchise and appreciate its confidence in the team and our expansion opportunities.
“The financing will support our continuing work to build world-class midstream assets, which we expect will provide decades of high-return drilling inventory, driving additional project growth and scale in a rapidly expanding basin as well as downstream market solutions for residue gas, NGLs and crude.”
Source: Company Press Release