Midstream provider Lucid Energy Group has secured a preferred equity commitment of up to $250 million from Magnetar Capital, a leading alternative asset manager with assets under management of $13.8 billion, Lucid said May 2 in a statement.
Magnetar’s investment will be used for ongoing expansion of Lucid’s infrastructure build-out in the Permian Basin and will be specifically used to support the development of its natural gas gathering and processing system in the Delaware Basin.
“We are very excited to partner with Magnetar, a deeply experienced and value-added energy investor,” said Lucid President and CEO Mike Latchem. “This important transaction, combined with the existing support of EnCap Flatrock Midstream, allows us to continue to aggressively expand our Delaware Basin franchise and offer large-scale, best-in-class service to producers in the region.”
Eric Scheyer, Magnetar’s head of energy, praised Lucid’s management team.
“Lucid has an outstanding track record of developing high-quality assets in the Permian Basin and continues to do an excellent job of executing on its expansion plans,” he said. “We believe that Magnetar’s flexible investment approach is well matched to support Lucid’s long-term strategic plans, and we look forward to expanding our relationship with the Lucid team.”
Jefferies LLC acted as Lucid’s financial adviser in connection with the transaction. Vinson & Elkins LLP acted as legal counsel to Lucid, and Weil, Gotshal & Manges LLP served as legal adviser to Magnetar.
Recommended Reading
Pembina Pipeline Enters Ethane-Supply Agreement, Slow Walks LNG Project
2024-02-26 - Canadian midstream company Pembina Pipeline also said it would hold off on new LNG terminal decision in a fourth quarter earnings call.
Waha NatGas Prices Go Negative
2024-03-14 - An Enterprise Partners executive said conditions make for a strong LNG export market at an industry lunch on March 14.
Energy Transfer Asks FERC to Weigh in on Williams Gas Project
2024-04-08 - Energy Transfer's filing continues the dispute over Williams’ development of the Louisiana Energy Gateway.
Canada’s First FLNG Project Gets Underway
2024-04-12 - Black & Veatch and Samsung Heavy Industries have been given notice to proceed with a floating LNG facility near Kitimat, British Columbia, Canada.
Venture Global Acquires Nine LNG-powered Vessels
2024-03-18 - Venture Global plans to deliver the vessels, which are currently under construction in South Korea, starting later this year.