Put on your shades, folks. A whirling dervish is sweeping through the Permian and kicking up the dust with three midstream acquisitions in seven days.
Reese Energy Consulting today is following the latest news from the nation’s shale hotspot, where gas gatherers and processors are making all the right moves to expand their operations. Last Friday, Delaware player Matador Resources bought Summit Midstream’s Delaware assets for $75 million. Earlier this week, DCP Midstream picked up Woodland Midstream and its James Lake System servicing both the Delaware and Midland for $160 million.
But the big news flew in this morning from Targa, which will snatch up Lucid Energy for $3.55 billion in cash. As one of the largest midstream infrastructure companies in North America, Targa operates in numerous basins but it’s the Permian’s Midland that steals the show accounting for 71% of total gas volumes. The Midland system includes 7,000 miles of gas gathering pipe and 16 processing plants with a combined capacity of 2.75 BCFD. The deal with Lucid now welcomes Targa to the Delaware with 1,050 miles of pipeline and the Red Hills processing complex that consists of six plants with a combined 1.4 BCFD of capacity in operation or under construction.