Flush with a $400 million expanded credit facility last December, Dallas-based Producers Midstream wasted little time completing Phase I of a new gathering, treating, and processing system this year in Lea County, N.M. This, while jumpstarting growth projects that relocate or repurpose its existing assets.

Reese Energy Consulting today is following the latest from Producers Midstream, which operates across the Eastern Permian Shelf, Texas Panhandle, and Western Okla., with 800,000 MCFD of gathering and processing capacity. Assets include 745,000 dedicated acres, 3,400+ miles of pipeline, treating for Nitrogen, H2S, and CO2, 150 miles of NGL lines, and 17 interconnects.

The company has now announced a slew of agreements with leading producers in the core of the Delaware to advance a Phase II expansion of its Lea County system that will increase processing capacity from 60 MMSCFD to 90 MMSCFD and introduce a state-of-the-art acid gas injection well. Phase II is slated for operation by 4Q this year.

Meanwhile, Producers late last month launched a binding Open Season ended July 14 to gauge shipper demand for the company’s proposed Palo Duro pipeline project that will repurpose its existing infrastructure to link gas to more outlets in the Anadarko, increase interstate pipeline connections, and create a more strategic trajectory to flow gas to downstream markets.