Howard Midstream Energy Partners and WPX Energy will develop crude oil and natural gas gathering and processing infrastructure in the Delaware Basin.
As part of the strategic partnership, Howard Midstream will complete construction of a 50 mile crude oil gathering system, build a new cryogenic natural gas processing complex with an initial capacity of 400 million cubic feet per day and build associated natural gas and product pipelines.
The 50/50 joint venture is supported by an area of mutual interest of more than 600 square miles in Lea and Eddy Counties, New Mexico and Reeves and Loving Counties, Texas, with 50,000 net acres currently dedicated by WPX.
Mike Howard, Howard Energy Partners' chairman and CEO, says: 'Historically, producer-backed midstream companies have performed well given the strong alignment of interests. We are excited about the strategic partnership with WPX, one of the strongest players in the Permian Basin, and the positive implications it has for our business.'
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