Stakeholder Midstream Acquires Lovington Gas Gathering System
Stakeholder Midstream, LLC has completed the purchase of the Lovington Gas Gathering System from Lucid Energy Group, effective April 1, 2017. The system is located in the Northwest Shelf of the Permian Basin in southeast New Mexico and serves oil and gas producers in Lea and Chaves counties. The Lovington system is comprised of approximately 295 miles of gas gathering lines, 7,400 horsepower of compression and a 35,000 Mcfd refrigeration plant.
“We see a significant opportunity in the Northwest Shelf, where there is increasing activity by producers focused on acreage that provides not only attractive returns, but also a lower-cost entry point than some of the core areas of the Midland and Delaware basins,” Stakeholder Co-CEO Rob Liddell said. “The acquisition of the Lovington system is the first step in developing our ultimate vision for gas gathering, treating and processing in the area.”
The acquisition will add gas gathering services to Stakeholder’s midstream capabilities in the Permian Basin, which will complement the company’s newly constructed San Andres Crude Gathering System in Yoakum County, Texas, and Lea County, New Mexico. The crude oil system will be fully operational in early May and currently consists of approximately 60 miles of gathering lines and multiple downstream connections, which will provide access to the market center in Midland, Texas, regional refineries, and long-haul pipelines capable of delivering crude to the Gulf Coast.
“Our focus has always been to provide a reliable, cost-effective and flexible midstream solution for producers’ gas in this area of the Northwest Shelf,” said Stakeholder’s Senior Vice President of Business Development, Danny Craig. “We are excited to work with the producers currently served by the Lovington system and will continue to expand our footprint and capabilities to meet the needs of other producers in the area.”
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