EagleClaw Midstream Ventures LLC has entered into a definitive agreement to acquire PennTex Permian LLC, a wholly-owned subsidiary of PennTex Midstream Partners LLC. Primarily located in Reeves County, Texas, PennTex Permian’s assets include a cryogenic processing plant with the capacity to process 60 million cubic feet of natural gas per day (MMcf/d), approximately 90 miles of gathering pipeline and approximately 35 miles of condensate pipeline. PennTex Permian’s assets are supported by long-term dedications of more than 75,000 acres from regional producers.
EagleClaw will connect the PennTex system to its East Toyah System, bringing EagleClaw’s current processing capacity to 120 MMcf/d and total gathering pipeline to more than 200 miles served by nine field compressor stations with a total of 20,000 horsepower of low- and high-pressure compression. The combined systems serve producers in the Permian’s Delaware Basin targeting stacked pay zones including the Upper and Middle Wolfcamp, Bone Spring and the Avalon Shale formations.
EagleClaw also announced that it has broken ground on the installation of an additional cryogenic processing plant at its East Toyah Processing Complex in Reeves County. These wells include the last two wells drilled by Silverback Exploration LLC, each with initial production rates of approximately 7 MMcf/d of natural gas and 820 barrels per day of crude oil. The Toyah II plant will have the capacity to process 200 MMcf/d. EagleClaw expects to bring the Toyah II plant online later this year, bringing EagleClaw’s total processing capacity to 320 MMcf/d.
An 18-mile NGL line connects the East Toyah Processing Complex to Lone Star’s West Texas Gateway Pipeline, which transports NGLs to the market center at Mont Belvieu, Texas. The East Toyah complex also is connected to Kinder Morgan’s El Paso 1600 Pipeline, and by October will have an additional connect into ONEOK’s WestTex Transmission System, an intrastate natural gas pipeline system that connects into the Roadrunner Gas Transmission Pipeline. Phase One of the Roadrunner project is complete and currently serving markets in El Paso, Texas, and Mexico.
EagleClaw expects to complete the acquisition of PennTex Permian in the third quarter.
Headquartered in Midland, Texas, EagleClaw Midstream is a midstream company focused on developing infrastructure opportunities in the Permian Basin. The company is supported by equity commitments from EnCap Flatrock Midstream.