EagleClaw Midstream Ventures, LLC and its financial sponsor, EnCap Flatrock Midstream, have entered into a binding agreement to sell the company to funds managed by Blackstone Energy Partners and Blackstone Capital Partners for approximately $2 billion.
The all-cash transaction is expected to close by the end of July 2017 and includes approximately $1.25 billion in stapled debt financing provided by Jefferies LLC.
EagleClaw is the largest privately held midstream operator in the Permian's Delaware Basin. The company's assets are located in Reeves, Ward and Culberson counties, with processing facilities located primarily in Reeves County, Texas. The EagleClaw assets include:
- Total miles of pipeline: 375
- Total field compression horsepower: 48,000
- Total processing capacity: 320 MMcf/d
- Total processing capacity under construction: 400 MMcf/d
EagleClaw moves natural gas volumes from more than 220,000 acres.
(Click to enlarge)
Source: EagleClaw Midstream
EagleClaw will retain its name and operate as a Blackstone portfolio company. The leadership team and fundamentally all of the company's employees will remain in their current roles, the company said in a statement.
Jefferies LLC acted as EagleClaw's exclusive financial adviser in connection with the transaction and was the sole provider of the committed debt financing. The Jefferies team was led by Co-Head of Energy Investment Banking Peter Bowden. Blackstone was advised by Trevor Heinzinger of Morgan Stanley & Co. LLC and Skip McGee of Intrepid Partners LLC.
Frost Brown Todd LLC served as legal counsel to EagleClaw with partner Edward W. Moore, Jr. in the lead role from the firm's Dallas office. Thompson & Knight LLP represented EnCap Flatrock Midstream, with partner Sarah E. McLean in the lead role from the firm's Houston office. Blackstone was represented by Vinson & Elkins LLP, whose team was led by partner Keith Fullenweider.
By Oil and Gas 360
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