Quantum Capital Group and Old Ironsides Energy could be enjoying a better day than you. The energy-focused PE firms have settled on an acquisition deal between two of their portfolio midstream companies that gives one an entrance into the Perm’s Northern Delaware, and the other a monied exit. But, of course, that’s how you play ball in Private Equity Land. Next!

Reese Energy Consulting today is following the latest news from Houston-based Trace Midstream, backed by Quantum, which will buy Dallas-based LM Energy Holdings, backed by Old Ironsides, for an undisclosed price. The deal includes an existing gas gathering system now under expansion in N.M.’s Eddy and Lea counties. Current operations include gathering, compression, dehydration, condensate handling, and vapor recovery. Upon completion, the system will offer Northern Delaware shippers 170 miles of gathering and transportation pipe, 650 MMCFD of capacity, and 12 compressor stations connected to numerous gas plants near Loving, N.M.

Trace’s purchase brings the infrastructure developer back into the midstream game after selling its Hayesville and Mid-Continent assets in 2022 to Williams and Energy Transfer, respectively, for a reported $1.5 billion to focus on Carbon Capture and Sequestration. The company last year announced a plan to develop a CCS site in La.