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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Later, Gator

Later, Gator

Reese Energy Consulting today is showing some love to our midstream compadres that also enjoyed a stellar Q2. Houston-based Crestwood Equity Partners is no exception but comes with a couple of interesting twists to stay tuned for. Crestwood, which operates gathering, processing, storage and pipeline systems in the Permian, Bakken, and Powder River basins, has announced second quarter revenues of $929.6 million, compared with $352.7 million in the same period last year. A staggering comeback, no doubt. But recent changes still in play could well reveal bigtime opportunities for this company on a fast track to grow, minus the ties that bind. Let’s review. Crestwood in March split the sheets with private equity backer First Reserve, which also served as general partner. In the divorce settlement, the company will shell out $400 million to buy out First Reserve’s 24% stake. In June, Crestwood and Marcellus partner Con Edison closed on the $1.23 billion sale of Stagecoach Gas Services to Kinder Morgan. Now, feeling a might freer with a little more pad in the pocket, Crestwood is biding its time to make just the right strike.

What do you think? Learn more about REC and our midstream services at www.ReeseEnergyConsulting.com.

Crestwood Equity Partners

Crestwood Equity Partners LP (NYSE: CEQP) is a publicly traded master limited partnership that owns and operates midstream assets located primarily in the Bakken Shale, Delaware Basin, Powder River Basin, Marcellus Shale and Barnett Shale. 

www.crestwoodlp.com

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