Blackstone signs agreement to acquire EagleClaw Midstream Ventures for $2bn

Blackstone Energy Partners and Blackstone Capital Partners have signed a binding agreement to acquire EagleClaw Midstream Ventures for approximately $2bn.

The funds signed the agreement with EagleClaw Midstream Ventures and its financial sponsor, EnCap Flatrock Midstream.

The all-cash transaction deal is expected to be completed by the end of July and includes a loan worth approximately $1.25bn, provided by Jefferies.

EagleClaw is a privately held midstream operator in the Permian’s Delaware Basin in West Texas.

After the execution and formal completion of the acquisition process, EagleClaw will retain its name and operate as a Blackstone portfolio company.

EagleClaw president and CEO Bob Milam said: “This transaction is a very exciting moment in our advancing growth story.

"As we begin a new chapter, we will continue to deliver the same outstanding level of service our customers expect while we work with Blackstone to deploy additional capital and to expand our footprint in the Delaware Basin.

"Blackstone has a deep understanding of the compelling fundamentals of the upstream and midstream economics in the Permian, an outstanding reputation as an investor in the energy sector and the scale to take EagleClaw to the next level.

"We are proud to have their support and look forward to a long and successful relationship.”

EnCap Flatrock Midstream managing partner and founder Bill Waldrip said: “The sale to Blackstone will produce strong returns for our institutional investors and rewards the EagleClaw team for many years of very hard work.

"We also appreciate Blackstone’s interest and diligence in working with us to reach an agreement that is beneficial for everyone at the table. We are confident that Blackstone is the right partner to take EagleClaw to the next level and look forward to watching its story evolve.”

Blackstone senior managing director and Blackstone Energy Partners CEO David Foley said: “Our extensive experience over the past two decades as an investor across all segments of the energy sector, access to capital on a very large scale and first-hand knowledge of the Permian as an owner of oil and gas producers in this region make Blackstone uniquely well qualified to acquire EagleClaw and to build upon the solid foundation started with the investment of Bill Waldrip and the folks at EnCap Flatrock Midstream.”

Blackstone was advised by Morgan Stanley and Intrepid Partners, while Jefferies served as the exclusive financial advisor of EagleClaw.

Blackstone Energy Partners is the energy-focused private equity business division of Blackstone, an investment and asset management firm.