LM Energy Completes First Phase of Touchdown Gathering System
(P&GJ) — LM Energy Holdings said it has completed Phase I of its Touchdown Crude Oil Gathering System in the northern Delaware Basin and will begin transporting crude oil in October for contracted customers in Eddy County, N.M.
Dallas-based LM Energy said it had already begun construction when it launched a binding open season in mid-July to obtain commitments for the greenfield system, initially consisting of about 50 miles of gathering and transportation lines.
In Phase II of the project, LM Energy will extend the crude oil gathering system and construct a gas gathering System for a combined total of more than 100 miles of low-and high-pressure pipelines. The company said Phase II will begin operations in the first quarter of 2020 and serve multiple customers dedicated to both the crude oil and gas gathering systems.
“We are constructing our systems with new large diameter pipelines purpose-built for modern well performance," said Elliot Gerson, managing partner of LM Energy. "The high-rate-of return drilling, with oil-weighted economics and associated gas, is the ideal environment for a crude oil and natural gas midstream provider.”
The newly formed LM Energy in February announced a partnership with private oil and gas investors Old Ironsides Energy to pursue midstream development and acquisition opportunities throughout the United States. It cited its management's prior midstream experience across many producing regions, including the Midland Basin, Ark-La-Tex, the Mid-Continent, and most recently the Denver-Julesburg and Delaware Basins.
Davis, the current managing partner and president, previously was co-founder and chairman of Discovery Midstream, which was sold in August 2018 for $1.2 billion. LM Energy's management team also includes CFO Elliot Gerson, who headed Finance at Brazos Midstream until its sale for $1.75 billion in May 2019, and July Hartmann, who was chief accounting officer and partner of Discovery Midstream.
LM Energy was previously known as Longhorn Midstream.
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