Delphi Midstream Partners LLC (DMP), an energy investment firm formed less than two months ago, on Monday struck a deal to buy one of Carrizo Oil & Gas Inc.’s Barnett Shale natural gas gathering systems and to invest in the producer’s Marcellus Shale infrastructure.

In the first of the two transactions, DMP agreed to acquire for an undisclosed amount Carrizo’s Mansfield System in Tarrant County, TX. The system’s current operating capacity of 70 MMcf/d may be expanded to 90 MMcf/d, DMP said. The transaction is set to close by Oct. 23.

DMP also obtained the right to invest up to $100 million to develop midstream infrastructure in northeastern Pennsylvania to support Carrizo’s Marcellus Shale development plan.

Carrizo, based in Houston, has a 60,000-acre leasehold in the Barnett Shale, and it is developing a 103,000-acre leasehold in the Marcellus Shale. Carrizo’s production volumes in 2Q2009 totaled 7.89 Bcfe, compared with 6.10 Bcfe in 2Q2008. The producer credited most of the 29% jump in output to new production volumes from the Barnett operations.

DMP was founded in late July with an equity commitment from privately held American Securities LLC. It plans to invest in and acquire up to $2 billion of midstream energy sector companies and assets. The firm is led by CEO Thomas F. Karam, who is the former president and COO of Southern Union Co. Michael J. Walsh, who serves as senior vice president, was a partner and founding member of Highstar Capital, which invests in the midstream energy sector.

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