EagleClaw Midstream Ventures to Acquire PennTex Permian
EagleClaw Midstream Ventures will acquire PennTex Permian, a wholly owned subsidiary of PennTex Midstream Partners, which holds assets including a cryogenic plant with the capacity to process 60 MMcf/d of natural gas, 90 miles of gathering pipeline and a 35 miles of condensate pipeline.
Located primarily in Reeves County, TX, PennTex Permian’s holdings are supported by long-term dedications of more than 75,000 acres from the region’s producers, the company said. EagleClaw expects to complete the acquisition in the third quarter.
“Given the Delaware Basin’s stacked pay potential, we believe Reeves County may contain the largest inventory of profitable wells in the U.S. We’re seeing great production and drilling results paired with economics that make sense, even through the downturn,” said EagleClaw President and CEO Bob Milam.
Based on recent well performance in the area, EagleClaw also has broken ground on an additional cryogenic processing plant at its East Toyah Processing Complex in Reeves County. These wells include the last two wells drilled by Silverback Exploration, each with initial production rates of about 7 MMcf/d of natural gas and 820 bpd of crude oil. The 200 MMcf/d Toyah II plant is expected online later this year, bringing EagleClaw’s total processing capacity to 320 MMcf/d.
An 18-mile NGL line connects the East Toyah Processing Complex to Lone Star’s West Texas Gateway Pipeline, which transports NGLs to Mont Belvieu. The East Toyah complex also is connected to Kinder Morgan’s El Paso 1600 Pipeline and by October will have an additional connect into ONEOK’s WestTex Transmission System, an intrastate natural gas pipeline system that connects into the Roadrunner Gas Transmission Pipeline (“Roadrunner”). Phase One of the Roadrunner project is complete and currently serving markets in El Paso, Texas, and Mexico.
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