A subsidiary of the EnLink Midstream companies – EnLink Midstream Partners LP (NYSE: ENLK) (the Partnership) and EnLink Midstream LLC (NYSE: ENLC) (the General Partner) – has completed its acquisition of certain subsidiaries of Tall Oak Midstream LLC for $1.55 billion, subject to certain adjustments.
Tall Oak’s gathering, processing and compression assets are located in the core of the STACK and Central Northern Oklahoma Woodford (CNOW) plays, and serve as a complement to EnLink’s existing position in the Cana-Woodford shale play.
In December 2015, a subsidiary of Devon Energy Corp. (NYSE: DVN) signed a definitive agreement to acquire 80,000 net surface acres, with up to 10 prospective zones, in the Anadarko Basin STACK play from Felix Energy LLC for $1.9 billion, subject to certain adjustments. The Felix acreage is dedicated to the Tall Oak system, making it the largest customer of this system. The acquisition of Felix will enhance Devon’s size and scale in the STACK play by adding approximately 80,000 net surface acres immediately north and northeast of its legacy STACK/Cana position.
Tall Oak’s key contracts are primarily fee-based with acreage dedications and have a remaining weighted-average term of approximately 15 years. Additionally, Devon will provide EnLink with five-year minimum volume commitments for gathering and processing on the dedicated Felix acreage.