Infrastructure / Gulf Coast / Shale Daily / NGI The Weekly Gas Market Report / Permian Basin / NGI All News Access

Permian Delaware Midstream Partnership Formed by Ares, ARM Energy

Ares Management LP and ARM Energy Holdings LLC on Monday announced a partnership to develop multiple cryogenic processing facilities, natural gas and crude gathering lines and compression/treating facilities in the Permian Basin’s Delaware formation.

The partnership, Salt Creek Midstream LLC, would be operated by ARM Midstream Management LLC, an ARM Energy subsidiary. The greenfield development project spans more than 250,000 acres across the West Texas counties of Culberson, Reeves, Pecos Ward and Winkler, as well as New Mexico’s Lea and Eddy counties.

“We believe the rapid development of the Salt Creek project, on the heels of our successful development and sale of Kingfisher Midstream, demonstrates our agility, efficiency and integrated approach in evaluating and capitalizing on market opportunities,” said ARM Energy CEO Zach Lee.

ARM Energy developed Kingfisher Midstream LLC with HPS Investment Partners and then sold the Permian-focused business last year.

The initial phase of Salt Creek is expected to be commissioned this month. By the end of the year, the project is set to have 260 MMcf/d of processing capacity, with additional expansions planned as producers are added to the system.

To date, Salt Creek has secured commitments for more than 250,000 dedicated acres from multiple Delaware-focused producers.

“We believe that this company will benefit from the combination of our industry experience and long-term relationships in the sector as well as ARM’s extensive midstream, downstream and marketing knowledge,” said Ares’ Nate Walton, co-head of North American private equity.

Salt Creek also has completed a $350 million term loan facility through Deutsche Bank, with proceeds to be used to fund further development.

ISSN © 2577-9877 | ISSN © 1532-1266 | ISSN © 2158-8023

Recent Articles by Carolyn Davis

Comments powered by Disqus