Lucid Energy Group secures investment of up to $250m from Magnetar Capital

Natural gas processor Lucid Energy Group has secured a preferred equity commitment of up to $250m from Magnetar Capital.

This investment will provide additional growth capital for Lucid’s ongoing expansion of its infrastructure build-out in the Permian Basin.

The investment will be used to support the development of Lucid’s natural gas gathering and processing system in Delaware Basin.

Lucid president and CEO Mike Latchem said: “We are very excited to partner with Magnetar, a deeply experienced and value-added energy investor.

“This important transaction, combined with the existing support of EnCap Flatrock Midstream, allows us to continue to aggressively expand our Delaware Basin franchise and offer large-scale, best-in-class service to producers in the region.”

Magnetar head of energy Eric Scheyer said: “We are thrilled to partner with Lucid Energy Group and its exceptional management team.

“Lucid has an outstanding track record of developing high-quality assets in the Permian Basin and continues to do an excellent job of executing on its expansion plans.

“We believe that Magnetar’s flexible investment approach is well matched to support Lucid’s long-term strategic plans, and we look forward to expanding our relationship with the Lucid team.”

Jefferies acted as Lucid’s financial adviser while Vinson & Elkins served as legal counsel to Lucid in this transaction and Weil, Gotshal & Manges served as legal adviser to Magnetar.

Lucid Energy provides midstream services to producers working in the Midland and Delaware Basins.

Lucid is claimed to be the largest privately held natural gas processor in the Permian Basin with more than 930 million cubic feet of natural gas processing capacity in operation or under construction, as well as pipeline assets reaching more than 3,600 miles in operation.