Producers Midstream II LLC, a Dallas-based portfolio company of Tailwater Capital, has announced that it has signed definitive agreements to acquire 100% of Midcoast Energy's gas gathering and processing assets in the Anadarko Basin (Anadarko G&P) and a 35% operating interest in Texas Express Gathering (TEG), a Y-grade gathering pipeline, each subject to customary closing conditions.
Spanning the Texas Panhandle and Western Oklahoma, Anadarko G&P includes more than 3200 miles of pipeline, 870 million ft3/d of available processing capacity and about 292 000 hp of compression across the Anadarko Basin.
TEG consists of a 138-mile Y-grade gathering pipeline that connects Anadarko Basin and Barnett Shale gas processing facilities to the Texas Express Pipeline and ultimately to the Mont Belvieu NGL hub.
Upon completion of the transaction, Producers Midstream will integrate the acquired assets with its existing Scurry and Fisher County gas gathering and processing system through Anadarko G&P's Palo Duro Pipeline, a 310-mile pipeline that runs from the Texas Panhandle through the Scurry and Fisher County region. The addition of the Midcoast Energy assets will enhance the company's service offering and geographic reach.
"These high-quality and complementary assets expand our ability to provide best-in-class midstream infrastructure solutions, positioning our business to create substantial long-term value for our customers," said Matt Flory, Chief Executive Officer of Producers Midstream. "We are excited to welcome the Midcoast team to the Producers organisation and look forward to building upon Midcoast's strong foundation."
"Since the formation of Producers Midstream in 2016, our teams have shared a collective vision, and this acquisition will position Matt and the exceptional leadership team at Producers to leverage a strong asset base to provide industry-leading services to a diversified group of customers," said Edward Herring, Co-Founder and Manager Partner at Tailwater Capital. "By creating a link between a growing production base in Scurry and Fisher County and infrastructure in the Anadarko Basin, new and existing customers in both regions stand to benefit." "The Producers Midstream team has a proven track-record of creating innovative and unique 'win-win' solutions for their customers and stakeholders," said Stephen Lipscomb, Partner at Tailwater Capital. "We couldn't be more excited to support this consolidation opportunity that will significantly enhance Producers' service offering.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/22122021/producers-midstream-ii-inks-agreement-with-midcoast-energy/