EagleClaw Midstream to acquire US company PennTex Permian

EagleClaw Midstream Ventures has signed an agreement to acquire PennTex Midstream Partners’ wholly-owned subsidiary, US-based PennTex Permian.

PennTex Permian’s assets are primarily located in Reeves County, Texas, US, and include a 60 million ft³ of natural gas per day (MMcf/d) cryogenic processing plant.

The acquisition will also include about 90 miles of gathering pipeline and about 35 miles of condensate pipeline.

EagleClaw will connect the PennTex system to its East Toyah System and bring the former’s existing processing capacity to 120MMcf/d.

The total gathering pipeline will be brought to more than 200 miles and would be served using nine field compressor stations with a total of 20,000 horsepower of low-pressure and high-pressure compression.

Serving producers in the Permian’s Delaware Basin, the combined systems will target stacked pay zones including the upper and middle wolfcamp, bone spring and the avalon shale formations.

EagleClaw has also started construction of an additional cryogenic processing plant at its East Toyah processing complex in Reeves County.

The Toyah II plant will have the capacity to process 200MMcf/d and is expected to come online later this year.

EagleClaw president and CEO Bob Milam said: “Given the Delaware Basin’s stacked pay potential, we believe Reeves County may contain the largest inventory of profitable wells in the US.

"We’re seeing great production and drilling results paired with economics that make sense, even through the downturn.

“These assets, together with long-term dedications of approximately 200,000 acres, position EagleClaw as the largest privately held midstream player in the Southern Delaware Basin.”

The acquisition is expected to be completed in the third quarter of this year.