The largest privately held midstream operator in the Southern Delaware Basin of West Texas just got bigger with the $950 million purchase of Caprock Midstream Holdings in Midland, Texas.
Eagleclaw Midstream, a portfolio company of Blackstone Energy Partners announced this week it entered into binding agreements to acquire Caprock from Energy Spectrum Capital and Caprock Midstream Management. It is an all-cash deal which should be closed later in the year.
EagleClaw’s executive leadership team will lead the combined business which will operate under the EagleClaw name. EagleClaw’s assets are located in Reeves, Ward and Culberson counties of Texas and include more than 550 miles of natural gas and natural gas liquids pipelines.
The firm serves many of the region’s leading oil and gas producers. Since it was acquired last year by Blackstone, Eagleclaw has more than doubled its processed volumes and system capacity and increased the amount of acreage under long-term dedication by more than 55 percent.
Caprock is a privately held midstream operator that provides gathering, processing, and disposal services for natural gas, crude oil, and produced water to producers in the Delaware Basin. Caprock’s assets are strategically located in the core of the southern Delaware Basin in Reeves and Ward counties. Caprock currently operates two natural gas processing facilities and will have 540 MMcf/d of processing capacity pro forma for the completion of two additional facilities currently under construction. Caprock also operates almost 300 miles of gas, crude, natural gas liquids, and water gathering pipelines;
