FORT WORTH, Texas, Oct. 10, 2017 /PRNewswire/ -- Brazos Midstream
Holdings, LLC ("Brazos") ("The Company") today announced that
subsidiaries of The Company have closed on the purchase of a
natural gas gathering system from Callon Petroleum Company (NYSE:
CPE) ("Callon"). As part of the acquisition, Brazos signed a
long-term, fee-based agreement with Callon for gas gathering and
processing services for acreage under development in
Ward and Pecos counties, one of the premier areas of
the Southern Delaware Basin. Including the Callon dedication,
Brazos' midstream infrastructure is anchored by long-term acreage
dedications covering approximately 240,000 acres with top-tier
Permian operators.
"The acquisition of these strategic assets builds upon our
existing franchise position and provides a platform for growth in
an area we know well," said Stephen
Luskey, Chief Commercial Officer of Brazos. "Callon is one
of the leading pure-play Permian operators and we are pleased
to be able to manage their gas infrastructure needs. We look
forward to a long-term partnership with Callon and other producers
as we grow in one of the most promising regions in our
industry."
Joe Gatto, Chief Executive
Officer and President of Callon Petroleum stated, "We are pleased
to be entering into a long-term operating partnership with the team
at Brazos Midstream, one of the premier gathering
and processing firms in the Delaware Basin. We believe this transaction
supports our current plans for robust growth across our
Delaware Basin footprint."
The strategic acquisition positions Brazos as one of the largest
private natural gas and crude oil midstream companies in the
Delaware Basin. The acquired
natural gas gathering system will connect to Brazos' existing
system and the previously announced Comanche II natural gas
processing plant. When complete in January
2018, Brazos' total operated processing capacity will be 260
MMcf/d. In addition, Brazos is accelerating plans to build a third
natural gas processing plant, Comanche III, to meet continued
volume growth in the region. The Company has secured a site for the
plant and will begin construction in early 2018.
About Brazos Midstream
Brazos Midstream Holdings LLC
is an independent midstream energy company headquartered in
Fort Worth, Texas. The Company is
focused on crude oil gathering, natural gas gathering and
processing, compression, treating, water and condensate handling
and stabilization. Brazos currently operates approximately 275
miles of natural gas and crude oil pipeline, a natural gas
processing complex, and approximately 50,000 barrels of crude oil
storage in the Delaware Basin. The
Company is supported by equity commitments from affiliates of Old Ironsides Energy, LLC
and a revolving credit facility with multiple banks.
For more information, please visit www.brazosmidstream.com.
Media
Contact:
|
Meggan
Morrison
|
|
M2
Communications
|
|
972-639-8715
|
|
meggan@m2commsgroup.com
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/brazos-midstream-acquires-callon-petroleum-companys-natural-gas-gathering-system-in-southern-delaware-basin-300531269.html
SOURCE Brazos Midstream