More Bite for Rattler

More Bite for Rattler

Midland, Texas-based Diamondback and its subsidiary, Rattler, enjoy a symbiotic relationship through joint ventures in the Permian that enable the former to bolster upstream development and the latter to support that production via midstream infrastructure. Reese Energy Consulting today is following the now announced sixth joint venture between the two in which Rattler has acquired a majority interest in a gathering and processing company serving the Midland sub-basin and operated by West Texas Gas. The price was not disclosed; however, Rattler invested $104 million in cash to secure a minority interest in its latest JV with Diamondback. The deal with WTG includes an interconnected gas gathering system and a whale of a bonus prize in the form of six major gas processing plants with 925 MMCF of total capacity. In addition to Rattler’s oil, gas, and water gathering pipelines and two gas processing plants, the company owns equity interests in the Permian-to-Gulf Coast EPIC and Gray Oak crude oil pipelines, as well as the Wink-to-Webster oil pipeline scheduled for service later this year.

What do you think? Learn more about REC and our natural gas and crude oil services at www.ReeseEnergyConsulting.com.

Diamondback Energy

Diamondback Energy is an American energy company engaged in hydrocarbon exploration and headquartered in Midland, Texas. As of December 31, 2020, the company had 1,316 million barrels of oil equivalent of estimated proved reserves, of which 58% was petroleum, 20% was natural gas, and 22% was natural gas liquids.

diamondbackenergy.com

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Diversified Finds a New Home in the Anadarko

Diversified Finds a New Home in the Anadarko

While late-year M&A activity in the Permian and Eagle Ford is in full swing, the acquisitions dance on our home turf is also getting a twirl. Reese Energy Consulting today is following the first of two recent oil and gas deals in Okla., where drilling has steadily ramped up as of late with 41 rigs at work—an increase of 241.7% over the same time last year. First up is Okla. City-based Tapstone Energy, the state’s largest leaseholder and mineral rights owner operating primarily in the Anadarko Basin. And that’s exactly where Birmingham, Ala.-based Diversified Energy is looking to…well, diversify its natural gas production. For 20 years, Diversified has operated solely in the Marcellus and Utica, producing gas, NGLs, and oil from 67,000 conventional and unconventional wells. Now, with a new expansion strategy in place to repeat its Appalachian business model in the Mid-Continent, Diversified will purchase Tapstone for $419 million. The deal includes 750,000 acres of mineral rights, 3,900 wells, and 25 MBOED in production with 80% in gas.

What do you think? Learn more about REC and our range of natural gas and NGLs marketing services at www.ReeseEnergyConsulting.com.

Tapstone Energy

Diversified Energy

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