The EnLink Midstream companies, EnLink Midstream Partners, LP, and EnLink Midstream, LLC, have announced that the partnership completed its previously announced acquisition of Coronado Midstream Holdings LLC, which owns natural gas gathering and processing facilities in the Permian Basin, for approximately US$600 million, subject to certain adjustments.
“The Permian Basin remains a strong and significant growth area for EnLink,” said Barry E. Davis, EnLink President and Chief Executive Officer. “We have identified and executed on strategic growth opportunities to expand our asset base in the region through over US$1 billion of capital invested since 2011. These assets come with an experienced management team that is highly respected and known for outstanding performance, and we welcome Coronado’s talented employees into the EnLink family.”
Coronado was founded by a group of independent producers and partners, including Reliance Energy, Wexford Capital LP, Gulfport Energy Corp, Wallace Family Partnership LP and Ted Collins, Jr. The Coronado assets include three cryogenic gas processing plants with a capacity of approximately 175 million ft3/d and a 270 mile gas gathering pipeline system in the North Midland Basin.
Construction of an additional 100 million ft3/d gas processing plant and gathering system expansions are currently underway. EnLink plans to connect the Coronado and Bearkat gas gathering pipeline systems to create a multi-county rich gas gathering and processing system that will offer extensive low pressure gathering services, cryogenic gas processing, and multiple delivery points for marketing customers’ products. With this acquisition, EnLink now owns and operates around 360 miles of gas gathering pipelines, approximately 300 million ft3/d of processing capacity as well as crude trucking and logistics services extending through seven counties in the core of the Midland Basin.
Adapted from press release by Hannah Priestley-Eaton