Sanchez Midstream Selling Certain Non-Core Assets
Sanchez Midstream Partners entered into a definitive agreement to sell certain of its non-core, non-operated production assets located in Texas to a private buyer for $6.3 million. The sale is expected to close in the third quarter.
The sale of non-core production assets is consistent with the partnership’s strategy of focusing on midstream activities currently concentrated in the Western Eagle Ford in South Texas, the company said. Sanchez previously announced that it had signed an agreement to divest its remaining operated Oklahoma production assets for $5.5 million, before closing adjustments.
“In keeping with that strategy, we are pleased to report that the Raptor Gas Processing Facility, a 50% joint venture with Targa Resources Corp., successfully completed testing and start-up in June and is now fully operational,” said Gerry Willinger, CEO of the general partner of SNMP.
The facility, which began receiving deliveries from the Carnero Gathering Pipeline in June, has natural gas processing capacity of 200 MMcfe/d, scheduled to expand 260 MMcfe/d by the end of the third quarter. With the Raptor Gas Processing Facility fully operational, Raptor SECO Pipeline Phase 1 construction is now nearing completion and is expected to provide takeaway capacity from the Raptor Gas Processing Facility to markets in South Texas beginning later in July.
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