Navitas Midstream Partners LLC has completed its second acquisition in the Midland Basin. On Wednesday the company announced the purchase of natural gas gathering and processing assets that serve Midland and Upton counties in Texas.
The assets include approximately 114 miles of low- and high-pressure natural gas gathering pipelines ranging in size from 2 inches to 12 inches in diameter, as well as a cryogenic processing plant that has capacity of approximately 30 million cubic feet per day.
Navitas Midstream acquired the assets from a subsidiary of Apache Corp. for an undisclosed sum.
“We are excited to further expand our footprint in the core of the Midland Basin with an active, high quality producer such as Apache,” said R. Bruce Northcutt, founder and CEO of Navitas. “The addition of these assets signals our continued confidence in the long-term growth potential of this basin.”
In September, the company purchased natural gas gathering and processing assets serving Martin, Midland and Glasscock counties in Texas from a subsidiary of Denver-based DCP Midstream LLC. That transaction included approximately 1,000 miles of low- and high-pressure natural gas gathering pipelines and a cryogenic processing plant with capacity of more than 60 million cubic feet per day.
Speaking to the Midland Reporter-Telegram, Northcutt said that although low oil prices have slowed drilling activity, the company is confident in the longer term prospects for the region.
“At Navitas, we take a long-term investment perspective when looking at acquisitions and growth,” he said. “The Midland Basin has superior geology, and producers continue to improve efficiencies in the way they drill and complete wells. Our recent acquisitions demonstrate our commitment to the basin and our belief that rig activity will ultimately resume.”
