EnLink Midstream has entered into an agreement to acquire natural gas gathering and processing assets in the Delaware Basin, including a cryogenic gas processing plant.
Matador Resources Company will sell to EnLink its wholly-owned subsidiary which owns the Loving County system in Texas, consisting of a cryogenic natural gas processing plant with approximately 35 million cubic feet per day of inlet capacity together with approximately six miles of high-pressure gathering pipeline which connects a Matador-owned gathering system to the processing plant.
EnLink will pay approximately $143 million in cash, subject to certain adjustments. The transaction is expected to close in the fourth quarter of 2015.
According to Matador, the processing plant has been operational for about two weeks and is currently processing about 19 million cubic feet of natural gas per day.
Matador will be the largest customer on the system and will dedicate approximately 11,000 gross acres currently under development pursuant to a 15-year, fixed-fee gathering and processing agreement.
“This transaction establishes EnLink as a full-service midstream operator in the liquids-rich Delaware Basin, one of the most active producing areas in the United States,” commented Barry E. Davis, EnLink’s president and CEO.
“These assets are located in a highly attractive part of the Delaware Basin, providing us with an immediate foothold in the region. We look forward to working with Matador and other producers as we grow in one of the most promising regions in our industry.”
EnLink first entered the Delaware Basin region when it acquired LPC Crude Oil Marketing LLC in February 2015.