EnLink to buy Permian gas assets for $600mn

OREANDA-NEWS. EnLink Midstream will buy Permian operator Coronado Midstream Holdings for \\$600mn in a move to expand its west Texas footprint.

Coronado's assets include gas processing plants and gathering systems in the North Midland basin, which total 175mn ft?/d (5mn m?/d)of gas processing capacity and 270 miles (435km) of gas gathering pipelines. The company is also constructing an additional 100mn ft?/d of expansions to its current system, and plans to connect it Coronado system with its Bearkat system in Texas.

Coronado's assets are underpinned by long-term contracts and dedicated production from more than 190,000 acres. It services producers including Reliance Energy, Diamondback Energy, and RSP Permian.

EnLink has announced about \\$1bn in acquisitions in the past four months, including the acquisition of Permian crude operator LPC Crude Oil Marketing, for \\$100mn, and the purchase of 1,4000 miles of natural gas pipelines and related assets from Chevron for \\$235mn.

Coronado will receive \\$240mn in cash, \\$180mn in partnership common units, and \\$180mn in a new class of partnership common units.

EnLink in active across major oil and gas producing regions across the US, including the Barnett, Permian, Eagle Ford, Gulf coast and Utica and Marcellus shale formations. The company's assets include 8,800 miles of gathering and transportation pipelines, seven NGL fractionators totaling 252,000 b/d capacity, and gas processing plants totaling 3.4 Bcf/d capacity.