EnLink Midstream completes its acquisition of certain subsidiaries of Tall Oak Midstream, LLC. The Dallas midstream company paid $1.55 billion for Tall Oak’s assets.
“The acquisition of Tall Oak is consistent with our growth strategy and will provide additional expansion opportunities in one of the best plays in the nation, the liquids-rich STACK play,” said EnLink Midstream President and Chief Executive Officer Barry E. Davis. “This region offers some of the best drilling economics in North America with low breakeven prices and active producer customers who are committed to growing in the area.”
EnLink will be able to hit the ground running because it has locked in commitments from Devon Energy.
“The Tall Oak assets are anchored by long-term, fee-based contracts, with Devon being the largest customer on the system due to its acquired Felix acreage. We remain committed to maintaining our strong balance sheet and investment-grade credit profile while also providing long-term value to our unitholders by growing our business prudently and profitably.”
The deal includes Tall Oak’s gathering, processing and compression assets in the STACK and Central Northern Oklahoma Woodford plays. EnLink already has assets in the Cana-Woodford.
