San Antonio-based Stakeholder Midstream LLC has acquired the Lovington Gas Gathering System fromLucid Energy Group effective April 1.
The system is in the Northwest Shelf of the Permian Basin in southeastern New Mexico and serves oil and gas producers in Lea and Chaves counties. The Lovington system is composed of 295 miles of gas gathering lines, 7,400 hp of compression and a 35 MMcf/d refrigeration plant. Terms of the sale were not disclosed.
“We see a significant opportunity in the Northwest Shelf, where there is increasing activity by producers focused on acreage that provides not only attractive returns, but also a lower-cost entry point than some of the core areas of the Midland and Delaware basins,” said Stakeholder Co-CEO Rob Liddell. “The acquisition of the Lovington system is the first step in developing our ultimate vision for gas gathering, treating and processing in the area.”
The acquisition complements Stakeholder’s newly constructed San Andres Crude Gathering System in Yoakum County, TX, and Lea County, NM, which is expected to be fully operational in early May. It currently consists of 60 miles of gathering lines and multiple downstream connections, which would provide access to the market center in Midland, TX, to regional refineries, and to long-haul pipelines capable of delivering crude to the Gulf Coast.
Last year Dallas-based Lucid acquired Agave Energy Co., which owned and operated natural gas gathering and processing assets in the Permian’s Delaware sub-basin in southeastern New Mexico and the Powder River Basin of eastern Wyoming.