EagleClaw Midstream Services LLC announced Dec. 9 that it closed on the purchase of natural gas gathering and processing assets in Reeves County, Texas.
Midland, Texas-based EagleClaw bought more than 50 miles of gas gathering pipeline, a refrigerated Joule-Thomson (JT) plant with the capacity to process 15 million cubic feet per day (MMcf/d) of gas, a 60 MMcf/d cryogenic processing plant and seven new 1,700-horsepower compressors.
The assets form EagleClaw’s East Toyah Natural Gas Gathering and Processing System.
The system serves producers targeting stacked pay zones in the liquids-rich Delaware Basin, including the Upper and Middle Wolfcamp, Bone Spring and Avalon Shale formations. The company plans to connect the system to its Northwest Toyah Natural Gas Gathering and Processing System, also located in Reeves County.
EagleClaw’s two anchor customers are Silverback Exploration LLC and Elevation Resources LLC.
In support of the East Toyah acquisition, Silverback has dedicated production from 50,000 acres. EagleClaw also has secured a dedication to its Northwest Toyah system of up to 15,000 acres from Elevation. Silverback is supported by private equity commitments from EnCap Investments LP Elevation is supported by Pine Brook Partners.
To support EagleClaw’s growth, EnCap Flatrock Midstream has increased its total equity commitment to EagleClaw to $200 million.
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