Enlink Midstream Gains Full Ownership of Permian Basin Processing Plant

EnLink Midstream Partners announced its subsidiary has acquired full ownership in the Deadwood natural gas processing facility with the acquisition of an Apache Corporation subsidiary’s 50% ownership interest. The facility is located in Glasscock County in the Texas Permian Basin and comes at an accretive cost of about $40 million.

Pursuant to a 2011 agreement, EnLink and Apache jointly funded the development of a newly build processing facility in which each company held a 50% undivided ownership interest.

EnLink managed the plant’s initial construction and has operated the facility since its startup. The plant has a capacity of 58
MMcf/d, and is currently processing 45 MMcf/d. The acquisition brings EnLink’s net processing capacity in the Permian to 343 MMcf/d, excluding the Riptide processing plant, which is under construction and will add 100 MMcf/d of processing capacity in the Midland Basin.

“We consider the Deadwood facility to be an important piece of our growing infrastructure in the Permian Basin,” said Barry E. Davis, EnLink Midstream President and Chief Executive Officer. “By obtaining full ownership of the Deadwood processing facility, EnLink is able to enhance its presence in the Midland Basin, which is one of the most economic regions for oil and gas production in the U.S.”

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