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.
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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.