Stakeholder Midstream buys Santa Fe’s key assets in Texas

Stakeholder Midstream has bought Santa Fe Midstream’s (Santa Fe) gas gathering and processing assets in Yoakum County, Texas, US.

The acquired assets include 30-30 Gas Treating and Processing Plant, low-pressure gas gathering pipelines, downstream residue, and NGL lines. It also includes a long-term acreage dedication from a San Andres oil and gas producer.

The acquisition will strengthen Stakeholder Midstream’s Campo Viejo Processing Plant and gathering system, which serves San Andres producers on the Northwest Shelf of the Permian Basin.

Overall, it increases the system’s gas processing capacity to nearly 85 million cubic feet a day and total gathering pipeline mileage to 450 miles.

Stakeholder Midstream co-CEO Robert Liddell said: “We entered the San Andres play in 2016 due to the unique blend of production stability and growth potential, and that thesis has been validated by our customers’ performance.

“Despite a challenging commodity environment in 2020, our system volumes continued to grow year over year and we expect that trend to continue. This consolidation enhances Stakeholder’s capabilities to provide even better service to our customers.”

Established in 2015, Stakeholder Midstream operates as an independent midstream oil and gas company, serving unconventional shale producers in North America.

Earlier this year, the company acquired and integrated a crude gathering system owned collectively by Walsh Petroleum and Burk Royalty.

Stakeholder Midstream is backed by EnCap Flatrock Midstream, a venture capital firm that invests in midstream infrastructure opportunities in North America’s oil and gas industry.