EnLink Midstream is to acquire natural gas gathering and processing facilities in the Permian Basin for approximately $600 million.
The company announced on Monday that it has signed a definitive agreement to acquire Coronado Midstream Holdings LLC, a company that has a range of assets in the region.
Coronado operates three cryogenic gas processing plants and a gas gathering system in the North Midland Basin, with approximately 270 miles of gathering pipelines, 175 million cubic feet per day (MMcf/d) of processing capacity and 35,000 horsepower of compression.
In addition, Coronado is currently expanding its gathering system and building a further 100 MMcf/d of processing capacity.
EnLink said that it plans to connect the Coronado system with its existing Bearkat system to create a multi-county rich gas gathering and processing system.
Under the terms of the deal, the owners of Coronado will receive $240 million in cash, $180 million of common units in EnLink Midstream Partners and $180 million of a new class of common units in EnLink Midstream Partners, subject to certain adjustments.
"This transaction builds on EnLink's growing midstream platform in West Texas," commented Barry E. Davis, EnLink president and CEO. "The Coronado assets are located in the core of the North Midland Basin and are supported by the region's most focused and active producers. By combining Coronado with our recent LPC acquisition and our existing footprint, we have the opportunity to create tremendous value for our producer customers by linking our gas gathering, processing and crude oil logistics operations to provide a full-service midstream solution."
EnLink has made around $1 billion of acquisitions in just over four months, expanding its platform in key producing areas.
