In light of the recent COVID-19 developments, Dennard Lascar has been implementing a number of measures to safeguard the health of our employees, clients, contractors and the community, while continuing to operate responsibly and maintaining the resiliency of the company. We take seriously the guidelines of health experts and are adhering to the highest possible standards issued by the World Health Organization (WHO) and Centers for Disease Control (CDC) as well as governments and regulators across our areas of operations.
DALLAS, Aug. 1, 2016 /PRNewswire/ -- A subsidiary of EnLink Midstream Partners, LP (NYSE: ENLK) (the "Partnership"), and EnLink Midstream, LLC (NYSE: ENLC) (the "General Partner") and an affiliate of NGP Natural Resources XI, L.P. ("NGP") today formed a strategic joint venture to operate and expand the Partnership's natural gas, natural gas liquids, and crude oil midstream assets in the liquids-rich Delaware Basin.
The system expansion will provide leading midstream services to premier producer customers in the region. The new expansion, named Lobo II, will include the installation of a cryogenic natural gas processing facility with capacity up to 120 million cubic feet per day and associated natural gas and liquids gathering pipeline infrastructure in Loving County, Texas, and Eddy and Lea counties, New Mexico. The Partnership will serve as the joint venture's managing member and will handle day-to-day construction and operation of the assets, which are supported by long-term, fee-based commitments from major producers.
The expansion builds off the Partnership's existing Lobo System, a gathering and processing system acquired from Matador Resources in October 2015, which the Partnership contributed to the newly formed joint venture. Upon completion of Lobo II, the facility will have a total processing capacity of approximately 155 MMcf/d in the Delaware Basin, which continues to be an active growth region for oil and gas production with superior economics.
"EnLink has a proven strategy of expanding an established platform through organic growth and acquisitions, which we are successfully replicating in the Delaware Basin through this strategic partnership," said Barry E. Davis, EnLink Chairman, President, and Chief Executive Officer. "The joint venture creates an opportunity for EnLink to build a strategic partnership with NGP, which has robust producer relationships in the liquids-rich Delaware Basin. The experience and expertise of EnLink and NGP are highly complementary, reinforcing our commitment to maintaining our strong balance sheet, while providing financial flexibility to respond quickly to producer needs."
The joint venture is initially owned 50.1 percent by the Partnership and 49.9 percent by NGP. The Partnership contributed approximately $230 million of existing Delaware Basin assets to the joint venture and committed an additional approximately $285 million in capital to fund potential future development projects and potential acquisitions. NGP committed an aggregate of approximately $400 million of capital, including an initial contribution of approximately $115 million, which the joint venture distributed to the Partnership at the formation of the joint venture to reimburse the Partnership for capital spent to date on existing assets and ongoing projects. As part of this agreement, NGP granted the Partnership graded call rights beginning in 2021 to acquire increasing portions of NGP's interest in the joint venture at a price based upon a predetermined valuation methodology. The joint venture is governed by a board of directors initially comprised of two designees of each partner, with the Partnership serving as the joint venture's managing member that will handle day-to-day construction and operation of the assets.
"We are very pleased to announce this important partnership with EnLink in the Delaware Basin," said NGP Managing Partner Tony Weber. "The transaction leverages NGP's extensive experience in the Permian Basin, deep industry relationships, and financial capability. When coupled with EnLink's proven experienced management team and our conviction in the inherent long-term value of the Delaware Basin, this transaction creates the foundation for a successful long-term strategic partnership. We look forward to working closely with EnLink to explore potential additional opportunities to partner together."
About the EnLink Midstream Companies
EnLink Midstream is a leading, integrated midstream company with a diverse geographic footprint and a strong financial foundation, delivering tailored customer solutions for sustainable growth. EnLink Midstream is publicly traded through two entities: EnLink Midstream, LLC (NYSE: ENLC), the publicly traded general partner entity, and EnLink Midstream Partners, LP (NYSE: ENLK), the master limited partnership.
EnLink Midstream's assets are located in many of North America's premier oil and gas regions, including the Barnett Shale, Permian Basin, Cana-Woodford Shale, Arkoma-Woodford Shale, STACK, SCOOP, C-NOW, Eagle Ford Shale, Haynesville Shale, Gulf Coast region, Utica Shale, and Marcellus Shale. Based in Dallas, Texas, EnLink Midstream's assets include approximately 10,000 miles of gathering and transportation pipelines, 19 processing plants with approximately 3.9 billion cubic feet per day of processing capacity, seven fractionators with approximately 284,000 barrels per day of fractionation capacity, as well as barge and rail terminals, product storage facilities, purchase and marketing capabilities, brine disposal wells, an extensive crude oil trucking fleet and equity investments in certain private midstream companies. Additional information about the EnLink companies can be found at www.enlink.com.
Founded in 1988, NGP is a premier private equity firm in the natural resources industry with approximately $17 billion of cumulative equity commitments organized to make strategic investments in the energy and natural resources sectors. For more information, please visit www.ngpenergycapital.com.
This press release contains forward-looking statements within the meaning of the federal securities laws. These statements are based on certain assumptions made by the Partnership and the General Partner based upon management's experience and perception of historical trends, current conditions, expected future developments and other factors the Partnership and the General Partner believe are appropriate in the circumstances. These statements include, but are not limited to, statements with respect to the partner's capital commitments and future contributions, the joint venture's structure, the Lobo project's characteristics, the Lobo project's customers as well as forecasts regarding capacity, investment and timing for becoming operational for the project discussed above, as well as the Partnership's future growth and results of operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership and the General Partner, which may cause the Partnership's and the General Partner's actual results to differ materially from those implied or expressed by the forward-looking statements. These risks include, but are not limited to, risks discussed in the Partnership's and the General Partner's filings with the Securities and Exchange Commission. The Partnership and the General Partner have no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Media Contact: Jill McMillan, Vice President of
Public Relations, 214-721-9271,
Contact: Tony R. Weber, Managing Partner,
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/enlink-midstream-forms-strategic-joint-venture-with-ngp-to-expand-gathering-and-processing-business-in-the-core-of-the-delaware-basin-300307154.html
SOURCE EnLink Midstream