The newly acquired midstream infrastructure includes natural gas gathering and processing solutions for top-tier producer customers in the heart of the Delaware Basin
Cardinal Midstream announces acquisition of natural gas business in prolific Delaware Basin. (Credit: Terry McGraw from Pixabay)
Cardinal Midstream Partners (“Cardinal”), an independent midstream energy company based in Dallas, announced today it has signed definitive agreements with Medallion Midstream Services (“Medallion”) to acquire Medallion’s natural gas gathering and processing business in the Delaware Basin in West Texas. The transaction is subject to customary closing conditions and is expected to close in early 2023.
The newly acquired midstream infrastructure includes natural gas gathering and processing solutions for top-tier producer customers in the heart of the Delaware Basin. The system spans Reeves and Loving counties and includes approximately 80 miles of high- and low-pressure natural gas gathering pipelines and a 140 million cubic feet per day (MMcf/d) natural gas processing facility.
CEO Perspective
“This acquisition in the prolific Delaware Basin will serve as the cornerstone of Cardinal’s natural gas gathering and processing business strategy,” said Doug Dormer, Cardinal Chief Executive Officer. “The business is an ideal fit to leverage our team’s core competencies and industry relationships. We look forward to expanding the asset base and providing meaningful midstream solutions to serve area producers’ growth.”
From EnCap Flatrock
“Cardinal was the first management team we backed when we formed EnCap Flatrock in 2008 and Doug has been an incredible partner,” said Billy Lemmons, EnCap Flatrock Managing Partner and Founder. “We’re very excited about this next chapter of the Cardinal story with the acquisition of this high-quality asset, and look forward to Doug and his team continuing their track record of success.”
Advisors
Shearman & Sterling LLP is serving as legal advisor to Cardinal. Locke Lord LLP is serving as legal advisor and Greenhill & Co., LLC. is serving as financial advisor to Medallion.
Source: Company Press Release