LM Energy Holdings will sell more than 130 miles of pipelines, terminals and other assets in Eddy and Lea counties, New Mexico. (Source: Shutterstock)
LM Energy Holdings LLC entered definitive agreements to sell subsidiaries and assets related to its Touchdown Crude Oil Gathering System in Eddy and Lea counties, New Mexico. The buyer of the assets and financial details were not disclosed.
LM’s crude oil gathering assets include more than 130 miles of pipelines and two terminals with 136,000 bbl of storage capacity. The company began development in 2019 and has grown volumes to approximately 75,000 bbl/d.
Elliot Gerson, LM Energy’s CEO, said the “transaction positions LM as a stronger and even better capitalized company that is focused on our gas business.”
LM Energy has continued expanding its gas-gathering systems in Eddy and Lea. The systems provide low-pressure gathering, dehydration, compression, liquids handling and high-pressure gathering services. The company has constructed more than 70 miles of pipelines and will commission its sixth compressor station during fourth-quarter 2023.
“Gas volumes in the Northern Delaware Basin continue to outperform expectations, and meanwhile operators and regulators are increasing their focus on eliminating flaring. That combination creates a massive need for additional gas gathering and processing infrastructure,” Gerson said. “With our existing team, assets and relationships, we are extremely well positioned to continue growing our gas business.”
The Touchdown sale is to close during fourth quarter 2023.
Piper Sandler & Co. served as exclusive financial adviser and Kirkland & Ellis LLP served as legal counsel to LM Energy on the transaction.
Recommended Reading
CEO: Baker Hughes Lands $3.5B in New Contracts in ‘Age of Gas’
2024-07-26 - Baker Hughes revised down its global upstream spending outlook for the year due to “North American softness” with oil activity recovery in second half unlikely to materialize, President and CEO Lorenzo Simonelli said.
Souki’s Saga: How Tellurian Escaped Ruin with ‘The Pause,’ $1.2B Exit
2024-09-11 - President Biden’s LNG pause in January suddenly made Tellurian Inc.’s LNG export permit more valuable. The company’s July sale marked the end of an eight-year saga—particularly the last 16 months, starting with when its co-founder lost his stock, ranch and yacht in a foreclosure.
YPF, Petronas Target FID for Argentine LNG Facility in Late 2025
2024-08-16 - Argentina’s long-envisioned LNG export facility is closer to becoming a reality as state-owned YPF SA and Malaysia’s Petronas will look to reach a final investment decision in the second half 2025 on development in Sierra Grande on the country’s Atlantic Coast.
Freeport LNG Parent Receives Junk-level Credit Score From Fitch
2024-07-25 - Credit-rating firm Fitch Ratings cited the 2 Bcf/d Texas plant’s frequent downtimes among the factors leading to lowering Freeport LNG Investments LLLP’s credit grade on July 25.
Cheniere’s Corpus LNG Stage 3 Project on Track for Year-end Start
2024-08-09 - Cheniere Energy., which boasts 45 mtpa of LNG production capacity, is on schedule for first LNG production from its Corpus Christi LNG Stage 3 project by year-end 2024, the company’s CEO Jack Fusco said during a quarterly earnings webcast.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.