MIDLAND, Texas and HOUSTON—EagleClaw Midstream, a portfolio company of Blackstone Energy Partners and I Squared Capital, announced April 2 a series of commercial and organizational milestones.
Delaware Link Pipeline
First, EagleClaw announced that it has made a final investment decision to proceed with construction of the Delaware Link pipeline, a new pipeline designed to transport residue natural gas from the Delaware Basin to the Waha hub, with access to further downstream takeaway connections. Delaware Link is expected to be anchored by residue volumes from EagleClaw’s processing facilities as well as third-party customers.
The approximately 40-mile, 30-inch diameter pipeline will originate at EagleClaw’s three existing natural gas processing complexes in Reeves County, Texas (East Toyah, Pecos, and Pecos Bend) and will have transportation capacity of at least 1.2 Bcf/d. Given the level of producer inquiry, EagleClaw is also evaluating increasing the pipeline’s diameter and related transportation capacity.
Delaware Link is intended to provide E&Ps in the Delaware Basin further flow assurance and improved price realization by providing a direct, cost-advantaged path to Waha and multiple interconnections at Waha to various takeaway pipelines. These interconnections include, among others, direct access to the Permian Highway Pipeline, an approximately 2.1 Bcf/d pipeline designed to transport gas from Waha to the U.S. Gulf Coast and other premium priced markets.
Permian Highway, a joint venture between Kinder Morgan, EagleClaw, Apache and an affiliate of another anchor shipper, is currently under construction and is expected to be in service in the second half of 2020.
Pecos Bend IV Processing Plant Update
Second, EagleClaw announced that it has begun commissioning of the company’s fourth cryogenic processing plant at its Pecos Bend site, Pecos Bend IV, with full operational in-service planned for May 2019. The completion of Pecos Bend IV, which was acquired in conjunction with EagleClaw’s 2018 acquisition of Caprock Midstream, will take EagleClaw’s total interconnected processing capacity in the Delaware Basin to 1.3 Bcf/d. The interconnected nature of EagleClaw’s three main processing sites—East Toyah, Pecos and Pecos Bend—provides heightened flow assurance and reliability for the company’s customers.
EagleClaw is also working to connect its Sierra Grande site in Culberson County, which was recently acquired in conjunction with EagleClaw’s acquisition of Pinnacle Midstream, to the overall EagleClaw system via a high-pressure connector line, which should be complete by June 2019.
“We are pleased by the progress with the construction of Pecos Bend IV since our acquisition of Caprock Midstream in late 2018,” said Matt Wall, EagleClaw’s vice president of operations. “The interconnected nature of our newly-constructed processing sites and the increased scale of our operations is consistent with our mission of providing best-in-class service to Delaware Basin producers.”
Leadership and Organizational Changes
EagleClaw announced the retirement of Bob Milam as EagleClaw CEO and the promotion of Jamie Welch, previously EagleClaw president and CFO, to CEO. Milam co-founded EagleClaw in 2012, and under his leadership the company has grown into a leading, diversified midstream provider strategically located in the core of the Delaware Basin. Bob will remain on EagleClaw’s board of directors, serving as vice chairman.
David Foley, CEO of Blackstone Energy Partners and chairman of EagleClaw’s Board, stated, “On behalf of EagleClaw’s Board and all stakeholders, I would like to thank Bob for his leadership in co-founding EagleClaw and helping to build the company into the leading midstream provider in the Delaware Basin. We are pleased that Bob will continue to bring his extensive experience, insights, and relationships to bear as vice chairman of EagleClaw.”
Milam commented, “Today’s announcement is the next step in a succession planning process that our leadership team and board have developed over the last several years. We have an outstanding team in place, and I have great faith in their capabilities. Jamie Welch brings extensive experience in the midstream sector and has made a significant contribution to the company’s success.”
Welch remarked, “I would like to thank Bob for his leadership in growing EagleClaw into the business it is today, and I look forward to his continued involvement as vice chairman. I am honored to serve as the company’s CEO and to partner with the company’s employees and stakeholders to continue to advance EagleClaw’s mission of providing best-in-class midstream services to Delaware Basin producers.”
2022-05-19 - The $7 billion “merger of equals transaction” of Centennial Resource Developement and Colgate Energy will create the largest pure-play E&P company in the Delaware Basin of the Permian.
2022-04-26 - Under a strategic participation agreement with Oaktree Capital, Diversified Energy will obtain a 52.5% working interest in the acquisition of certain East Texas upstream assets and related facilities from a private seller.
2022-03-10 - Petro-Hunt completed the acquisition of predominantly operated oil and gas production and 21,430 net acres of leasehold in the Delaware Basin from Admiral Permian Resources, according to a recent company release.
2022-03-07 - The combined company, to be led by Oasis CEO Danny Brown, will operate a premier Williston Basin position under a new name.
2022-04-27 - The Hannathon acquisition adds roughly 18,600 net acres largely contiguous to the company’s existing Signal Peak position in the Permian Basin where Chairman and CEO Jack Hightower said HighPeak began its strategic expansion last August.