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Terminal News

EagleClaw Midstream to acquire Caprock Midstream

EagleClaw Midstream to acquire Caprock Midstream
EagleClaw Midstream will acquire Caprock Midstream Holdings for $950 million, which includes pipeline and storage assets.

Caprock provides gathering, processing and disposal services for natural gas, crude oil and produced water to producers in the Delaware Basin. It operates two natural gas processing facilities and will have 540 MMcf/d of processing capacity for the completion of two additional facilities currently under construction.

It operates 300 miles of gas, crude, natural gas liquids and water gathering pipeline and 23 million barrels of crude storage, which is expected to grow to more than 60 million barrels within the next 12 months.

The acquisition of Caprock is complementary to EagleClaw and further solidifies the company's position as the midstream partner of choice for producers in the Delaware Basin.

Once the acquisition is closed, EagleClaw will operate close to 850 miles of natural gas, natural gas liquids, crude and water gathering pipelines, 1.3 billion cubic feet per day of processing capacity and crude and water storage facilities, with more than 425,000 acres under long-term dedication for midstream services.

The acquisition will expand EagleClaw into crude and water-related services, providing opportunities for the company to offer a broad suite of midstream services to both existing and new customers.

The existing Caprock operating company will be renamed EagleClaw Midstream II.

Jamie Welch, EagleClaw's president and CEO, says: 'Following our recent announcement of the Permian Highway Pipeline in partnership with Kinder Morgan, the acquisition of Caprock is another exciting chapter in the continued growth story of EagleClaw.

'This transaction expands our business in every aspect, from asset footprint, to customer diversity, to breadth of service offering, while remaining true to EagleClaw's core mission of providing customer-focused midstream services in the Permian Basin.'