Elevate Midstream Partners LLC recently acquired gas gathering, treating and processing assets located throughout the core of the Haynesville and Cotton Valley formation serving East Texas producers.
The acquisition, which the Tailwater Capital LLC-backed midstream company acquired from Woodland Midstream Partners LP and Orion Pipeline LLC for an undisclosed amount, establishes a “strong asset base” for Elevate in East Texas, according to a company press release on Nov. 15.
Pro forma the acquisition, Elevate will own and operate more than 180 miles of active pipelines, 19,000 horsepower of compression, an 80 million cubic feet per day gas processing plant and related dehydration and NGL stabilization equipment.
Roger Fox, Elevate Midstream CEO, said the company will continue exploring additional opportunities for growth in and around the existing system.
“With assets strategically located in the core of the Haynesville and Cotton Valley formations and significant opportunities for continued growth and development across the combined company, Woodland and Orion provide a strong platform for Elevate and we look forward to growing our asset base as we continue to service our East Texas producers,” Fox said in a statement on Nov. 15.
The Woodland acquisition includes systems throughout both Texas and Louisiana, providing Elevate with an existing natural gas gathering, treating, compression and processing footprint. Additionally, the acquisition and strategic positioning of the Woodland asset includes several opportunities for growth, leveraging existing relationships around the extensive pipeline network acquired in the transaction, according to the company release.
Orion provides natural gas gathering, treating and compression services for production, also primarily from the Haynesville and Cotton Valley formations, in Western Panola and Eastern Rusk counties in East Texas. The Orion acquisition is a complementary asset base comprised of five systems that provide additional scale and the opportunity to drive synergies across the combined platform, the release said.
In conjunction with the transaction, select members of the Woodland management team will join Elevate, enhancing the company’s operational and business development capabilities.
Based in Houston, Elevate Midstream is a private midstream services company formed in 2017 through a $100 million initial equity commitment from Tailwater Capital.
In response to the deal, Joel Fry, a principal at the Dallas-based private-equity firm, said in a statement: “Since partnering with Elevate in October 2017, we have worked closely with Roger and his team to execute on the company’s growth strategy. These acquisitions are a prime example of Elevate's commitment to identifying underutilized assets with the potential for growth through improved operational and business development initiatives and further strengthen Elevate’s growing platform.”
Tailwater currently manages more than $2.7 billion in committed capital, over $800 million of which is available for new investments, the release said.
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