Houston-based Canyon Midstream Partners LLC secured a four-year, $50 million credit facility, the company said Sept. 4.
The facility can be expanded to $100 million, the company said, noting that proceeds will support expansion plans for the Permian Basin, Eaglebine and Tuscaloosa Marine Shale (TMS). In the Permian Basin, the company is working on the James Lake project, which will be complete in this year’s fourth quarter, Canyon said.
The Foster Creek processing plant in Wilkinson County, Miss., will serve the TMS, and the Trinity River midstream system in Houston and Madison County, Texas, will support the Eaglebine, Canyon added.
Wells Fargo Securities LLC was the sole lead arranger and sole book-runner. Wells Fargo Bank NA was the administrative agent and Royal Bank of Canada was the syndication agent, the company said.
Vinson & Elkins LLP was Wells Fargo’s legal counsel, while Porter Hedges was Canyon’s, the company said.
The facility closed Aug. 29, Canyon noted.
"Canyon appreciates the opportunity to work with proven lenders to the midstream sector such as Wells Fargo and RBC. Their experience and understanding of Canyon's expansion plans allowed this transaction to develop very quickly with attractive terms and flexibility for the next stage of our company's growth. We believe the lending capabilities of Wells Fargo and RBC will enhance Canyon's equity capital commitment from Kayne Anderson," said Michael Walsh, Canyon’s president and CEO.
Canyon is backed by $300 million in equity from Kayne Anderson Energy Funds, which is part of Houston-based investment firm Kayne Anderson Capital Advisors LP, the company added.
Recommended Reading
NOV's AI, Edge Offerings Find Traction—Despite Crowded Field
2024-02-02 - NOV’s CEO Clay Williams is bullish on the company’s digital future, highlighting value-driven adoption of tech by customers.
From Restructuring to Reinvention, Weatherford Upbeat on Upcycle
2024-02-11 - Weatherford CEO Girish Saligram charts course for growth as the company looks to enter the third year of what appears to be a long upcycle.
Todd Holdco to Invest Further into Northcliff Resources
2024-01-24 - Todd Holdco will acquire 37,333,333 common shares in Northcliff at CA$0.01875 (US$ 0.014) per common share.
Hess Corp. Boosts Bakken Output, Drilling Ahead of Chevron Merger
2024-01-31 - Hess Corp. increased its drilling activity and output from the Bakken play of North Dakota during the fourth quarter, the E&P reported in its latest earnings.
The OGInterview: Petrie Partners a Big Deal Among Investment Banks
2024-02-01 - In this OGInterview, Hart Energy's Chris Mathews sat down with Petrie Partners—perhaps not the biggest or flashiest investment bank around, but after over two decades, the firm has been around the block more than most.