Private equity-backed Canes Midstream LLC said Wednesday it has closed on its acquisition of Permian Basin midstream firm Cogent Midstream LLC.

Permian

Located in the southern portion of the Permian’s Midland sub-basin, the Cogent assets include 520 MMcf/d of natural gas processing capacity, over 800 miles of pipelines, 42 compressor stations, a crude oil gathering system, “and substantial acreage dedications from a diverse group” of Midland-focused producers, Canes management said. 

The Cogent system spans 10 Texas counties, with most of the infrastructure located in Reagan and Irion counties. 

“I was with these assets at inception and am excited to return and continue to grow them,” said Canes CEO Scott Brown. “With our newer facilities and the significant capital invested by Cogent to date, we are well positioned to grow the system and provide best-in-class midstream services to our existing and future customers. 

“I believe Canes will be the preferred midstream service provider in the Southern Midland Basin.”

Founded in 2019, Canes is a Dallas-based portfolio company of EIV Capital and Denham Capital.

“With fresh capital, Canes will continue to expand the system and support Permian production growth,” said EIV partner Greg Davis.

“Canes, via this acquisition, is well positioned to drive differentiated outcomes for area producers,” added Denham’s James Obulaney, managing director. “We look forward to supporting Scott and team as they grow this tier-1 system to service new and existing customers in the Permian Basin.”

The Permian is driving drilling, completions, permitting and production growth in the Lower 48 amid strong global commodity pricing and undersupplied oil and natural gas markets.

Also on Wednesday, Crestwood Equity Partners LP announced plans to more than double its natural gas processing footprint in the Permian’s Delaware sub-basin through a $600 million acquisition of Sendero Midstream Partners LP.

With natural gas takeaway constraints looming amid seemingly insatiable liquefied natural gas export demand, several initiatives to expand offtake capacity from the basin have been announced in recent days.

These include sanctioning of the 2.5 Bcf/d Matterhorn pipeline, as well as planned expansions of the Whistler, Gulf Coast Express and Permian Highway pipelines.