Blackstone to buy EagleClaw Midstream Ventures for about $2 bn
17 April 2017
Private equity firm Blackstone Group today struck a deal to buy US operator of pipelines and processing facilities EagleClaw Midstream Ventures LLC, for about $2 billion.
The all-cash deal includes about $1.25 billion in debt and is expected to close by the end of July 2017.
Post closing, EagleClaw will operate as a Blackstone portfolio company and will be run by current employees of the Texas-based company.
EagleClaw is the largest privately-held midstream operator in the Permian's Delaware Basin in West Texas.
The company's assets are located in Reeves, Ward and Culberson counties and include more than 375 miles of natural gas gathering pipelines and 320 million cubic feet per day (MMcf/d) of processing capacity with an additional 400 MMcf/d under construction.
The company provides natural gas producers with midstream services including gathering, compression, treating, processing and transportation.
''This transaction is a very exciting moment in our advancing growth story,'' said EagleClaw president and CEO, Bob Milam.
''Blackstone has a deep understanding of the compelling fundamentals of the upstream and midstream economics in the Permian, an outstanding reputation as an investor in the energy sector and the scale to take EagleClaw to the next level,'' he added.