EnLink Midstream Partners LP's (NYSE: ENLK) subsidiary has acquired a 50% ownership interest in the Deadwood natural gas processing facility from a subsidiary of Apache Corp. (NYSE: APA). The cost of the accretive acquisition was approximately $40 million.
The facility is located in Glasscock County, Texas, in the Permian Basin. Pursuant to a 2011 agreement, EnLink and Apache jointly funded the development of a new-build processing facility in which each company held a 50% undivided ownership interest. EnLink managed the plant’s initial construction, and has operated the facility since its startup.
The plant has a capacity of 58 million cubic feet per day (MMcf/d), and is currently processing approximately 45 MMcf/d. The acquisition brings EnLink’s net processing capacity in the Permian Basin to 343 MMcf/d, excluding the Riptide processing plant, which is currently under construction and will add another 100 MMcf/d of processing capacity in the Midland Basin.