Woodland Midstream II LLC has acquired the James Lake System from a privately-owned seller for an undisclosed amount.
James Lake represents a fully integrated sour gas gathering, treating and processing system with about 230 miles of pipeline, 110 million cubic feet per day of processing capacity and 35,000 horsepower of owned compression that serves producers in the Permian’s Central Basin Platform.
“James Lake has been a primary target of ours given its strategic location in the Permian Basin. This transaction represents Woodland’s first operating asset,” said CEO Richard H. Wright III. “We are thankful for the opportunity to work alongside our equity partners EIV Capital for a second time as we build a company focused around our customers, shareholders and employees.”
Woodland plans to invest additional capital into James Lake to accomplish multiple plant optimization and emissions reduction focused projects. Woodland also plans to enhance and expand James Lake’s condensate and liquids handling business.
“The acquisition of the James Lake System is an important step in realizing our vision to build a Permian-focused midstream company that brings customer service back to the focal point,” said Darin Aucoin, chief commercial officer.
While James Lake represents this iteration of Woodland’s first operating asset, it is not the team’s first venture. Woodland’s executive team has over 75 years of energy experience, including the Permian.
“I look forward to working in the Permian where I began my career at a sour gas facility and developed long term relationships in the midstream business” said COO Doug Coleman.
Devon Energy CEO Dave Hager said the industry in general, Devon included, has not delivered acceptable returns to investors.
As part of creating value, Parsley Energy is also divesting what it called “tail-end inventory” in the Southern Midland Basin for about $170 million.