Twin Eagle Resource Management LLC has acquired a 100% interest in StarMex Big Wells LLC, a 42-mile crude oil gathering system pipeline in the Eagle Ford shale region that connects to long-haul pipelines in the Gardendale, Texas, area. As of closing, StarMex Big Wells will be renamed Twin Eagle Gardendale Pipeline LLC.
The system is surrounded by several producers with production and continued drilling plans. The pipeline system has capacity of 35,000 barrels per day and is backed by long-term, fee-based contracts with existing customers that are committed to ship approximately 24,000 barrels a day.
With terminal locations in Elmendorf and Laredo, Texas, that serve customers and trucking operations near Gardendale, the acquisition expands Twin Eagle's midstream footprint in the Eagle Ford shale play and represents another step in Twin Eagle’s growing portfolio of midstream assets throughout many of the country’s basins including the Permian, Denver-Julesburg, Niobrara, and Bakken formations.
Headquartered in Dallas, Texas, StarMex was founded by a group of private investors in 2011.
Simmons & Company International acted as exclusive financial advisor to StarMex in connection with the transaction.