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Brazos Midstream to sell Delaware Basin subsidiaries for $1.75bn

EBR Staff Writer Published 10 April 2018

Brazos Midstream, which is backed by investment firm Old Ironsides Energy, has agreed to sell its Delaware Basin subsidiary companies to North Haven Infrastructure Partners II (NHIP II) and related funds for nearly $1.75bn.

As per the deal, NHIP II, which is an investment fund managed by Morgan Stanley Infrastructure (MSI), will acquire Brazos Midstream’s undisclosed Delaware Basin midstream assets.

Brazos CEO Brad Iles said: “We have built best-in-class assets in one of the most prolific and economic oil and gas producing regions in the United States.

“We are thankful for MSI’s commitment to our team and with their support we will continue to aggressively expand our business to serve our customers’ rapidly growing needs.”

“We are also extremely grateful to have had Old Ironsides Energy as a trusted partner. Their support and expertise, all along the way, has been critical to our success.”

Upon completion of the deal, Brazos will retain its name and operate as a portfolio company of North Haven while Brazos management will remain in their roles.

The transaction, which is subject to customary approvals and closing conditions, is planned to be completed in the second quarter of 2018.

In 2017, Brazos Midstream has acquired a natural gas gathering system in Southern Delaware Basin from Callon Petroleum Company for undisclosed amount.

A long-term, fee-based agreement has also been signed by Brazos with Callon for gas gathering and processing services for acreage currently under development in Ward and Pecos counties in Southern Delaware Basin.

Brazos currently operates nearly 563km of natural gas and crude oil gathering pipelines, a natural gas processing complex with 260 MMcf/d of processing capacity in operation with an additional 200 MMcf/d of capacity under construction, and approximately 50,000 barrels of crude oil storage.

The firm’s assets are in located in Reeves, Ward and Pecos counties in Delaware Basin.

Image: Brazos Midstream intends to divest its midstream assets. Photo: courtesy of adamr/FreeDigitalPhotos.net.