I Squared Capital has committed more than $500 million and contributed its Delaware Basin midstream portfolio company, Pinnacle Midstream, as part of a new partnership with EagleClaw Midstream and Blackstone Energy Partners.
Proceeds from I Sqaured, together with additional investments by Blackstone and EagleClaw’s management team, are being used to fund EagleClaw’s continued growth, including the expansion of EagleClaw’s system, the acquisition of Caprock Midstream, and the ongoing construction of the Permian Highway Pipeline.
This investment by I Squared and the acquisitions of Caprock and Pinnacle further augment EagleClaw’s position as the leading privately-held midstream operator in the Permian’s Delaware Basin in west Texas.
Pro forma for these acquisitions, EagleClaw operates almost 1,000 miles of natural gas, natural gas liquids, crude and water gathering pipelines, more than 1.4 billion cubic feet per day of processing capacity and crude storage and disposal facilities.
It now has nearly half a million acres in the core of the southern Delaware Basin under long-term dedication for midstream services.
EagleClaw is also a 50% partner with Kinder Morgan on the Permian Highway Pipeline.
The acquisition of Caprock Midstream and Pinnacle Midstream marks the next step in the overall Delaware Basin midstream consolidation as EagleClaw continues to grow and diversify its business.
Bob Milam, CEO of EagleClaw, says: ‘The acquisition of Pinnacle, coming on the heels of our recent announcements of the acquisition of Caprock and our partnership on the Permian Highway Pipeline, 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, while remaining true to EagleClaw’s core mission of providing best-in0class midstream service to Delaware Basin producers.’