February Top U.S. Midstream Deals: Delaware Appears As the Key Area

As production in key locations continue to steadily grow, most midstream companies continued expanding their infrastructure to connect their major producing areas to the promising market delivery locations. Delaware saw most of this activity, where gathering infrastructure is still thought to be underdeveloped. Experts point out the proximity of Mexican and U.S. Gulf of Mexico market as well as growth of the U.S. exports capacity to be primary drivers of CAREX going into new projects.

For instance, see how Howard Energy Partners and NextEra Energy Partners connect their systems to reach both domestic downstream as well as exports market.

Similar capital inflow was seen in Agua Blanca NG Pipeline Deal as First Infrastructure Capital Advisors increased its stake in the pipeline.

Another activity - not quite in Delaware but close enough - was seen at New Mexico - Texas border area, where Matador Resources continued expand its gathering, storage and processing facilities as it enetered the San-Mateo II JV,  second one with Five Point Energy.

 

All the midstream sector February 2019 deals that drew our attention can be found in the table below.

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Date announced

Buyer(s)

Seller(s)

Assets

Location

Deal Value

Date closed

Feb 4, 2019

First Infrastructure Capital Advisors LLC

WPX Energy Inc.

20% equity interest in WhiteWater Midstream’s 36-inch Agua Blanca natural gas pipeline (see the map)

Delaware Basin

$300 MM

Expected to close 1Q 2019

Feb 4, 2019

First Infrastructure Capital Advisors LLC

WhiteWater Midstream LLC, Denham Capital Management LP, Ridgemont Equity Partners

WhiteWater Midstream wholly acquired including its 60% stake in Agua Blanca (see the map)

Expected to close 1Q 2019

Feb 13, 2019

NextEra Energy Partners LP

Howard Energy Partners

Formed JV to develop additional natural gas transportation opportunities in the Eagle Ford shale region of South Texas

South Texas: Webb, Duval, Zapata, Dimmit, La Salle, McMullen, Live Oak and Jim Wells counties

Undisclosed

Feb 13, 2019

Oct 3, 2018

Salt Creek Midstream LLC, Ares Management LP ARM, Energy Holdings LLC

Noble Midstream Partners LP

Formed 50/50 JV partnership to develop a crude oil pipeline and gathering system

Delaware Basin

 

Feb 8, 2019

Feb 19, 2019

The Blackstone Group LP, GSO Capital Partners LP

Targa Resources Corp.

45% stake in Targa Badlands, which operates oil and gas gathering and processing assets (see the map)

Bakken and Three Forks shale plays, Williston Basin of ND.

$1,600 MM

Expected to close 2Q 2019

Feb 25, 2019

Five Point Energy LLC,

San Mateo Midstream LLC

Matador Resources Co.

Formed a new midstream JV, San Mateo II, to expand current gathering, processing and saltwater disposal capacity. 51% owned by Matador plus operational control

Northern Delaware Basin

Undisclosed

Feb 25, 2019

Feb 26, 2019

Hess Infrastructure Partners LP

Summit Midstream Partners LP

Water gathering assets of the Tioga Gathering System in Williams County, Western ND.

Williston Basin; Bakken

$67 MM

Expected to close 1Q 2019