Dallas-based EnLink Midstream Partners LP (NYSE: ENLK) completed the acquisition of Coronado Midstream Holdings LLC with general partner EnLink Midstream LLC (NYSE: ENLC), the companies said March 16.
The $600 million transaction was for natural gas gathering and processing facilities that Coronado owns in the Permian Basin.
The assets include three cryogenic gas processing plants with a capacity of about 175 million cubic feet per day (MMcf/d) and a 270-mile gas gathering pipeline system in the North Midland Basin.
Construction is underway on an additional 100 MMcf/d gas processing plant and gathering system expansions.
EnLink plans to connect the Coronado and Bearkat gas gathering pipeline systems to create a multicounty rich-gas gathering and processing system that will include multiple delivery points.
With this acquisition, EnLink now owns and operates about 360 miles of gas gathering pipelines, about 300 MMcf/d of processing capacity and crude trucking and logistics services extending through seven counties in the Midland Basin’s core, the companies said.
Barry E. Davis, president and CEO of Enlink, said that the Permian is an important growth area for the companies.
Midland, Texas-based Coronado Midstream Holdings LLC was founded by a group of independent producers and partners including Reliance Energy, Wexford Capital LP, Gulfport Energy Corp. (NASDAQ: GPOR), Wallace Family Partnership LP and Ted Collins Jr.
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