Two Sweet Bites for Diamondback

Two Sweet Bites for Diamondback

Midland, Texas-based Diamondback Energy is as much at home in the Permian as its indigenous rattler namesake. Formed in 2007 with an initial acquisition of 4,174 net acres, Diamondback has continued to expand its presence in the Land of Crude Oil Honey, also known as the Midland and Delaware sub-basins. Following a $7 billion merger in 2018 with Energen, the company was suddenly thrust into the realm of large-cap Permian E&P independent with 390,000 net acres. Reese Energy Consulting today is following the latest strikes by Diamondback, which now has snatched up two more Permian rivals for a combined $3.2 billion. First up is Irving, Texas-based Guidon Energy in a cash-and-stock deal valued at $850 million that adds 32,000 net acres in the Midland. Next, Denver-based QEP Resources in an all-stock transaction valued at $2.2 billion that includes 49,000 net acres in the Midland with 3Q production of about 48.3 MBPD and a Williston Basin stepchild Diamondback most certainly will look to offload. Because for some E&Ps, there’s simply no place like home than the Permian.

 

Diamondback Energy

Diamondback Energy is a company engaged in hydrocarbon exploration. It is organized in Delaware and headquartered in Midland, Texas.

diamondbackenergy.com

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Pinnacle’s Second Act

Pinnacle’s Second Act

Reese Energy Consulting today is following the latest news from Houston-based Pinnacle II, which is set to replicate its success as a savvy developer and operator of critical oil and gas infrastructure. In its first iteration as a portfolio company of private-equity firm Energy Spectrum Capital, Pinnacle constructed a Permian natural gas gathering and processing system and crude oil gathering and storage terminal, which included 100 miles of pipe, 30,000 Bbls of crude storage, and a 60 MMCFD processing facility. In short order, those assets were acquired by management and I Squared in 2017 and later by EagleClaw Midstream in 2018. Now in its second performance, Pinnacle II is ready to dance with a greenfield build of the Dos Picos Gathering system in the Midland Basin. Supported by a 15-year gas gathering, processing, and purchasing agreement with E&P DoublePoint Energy, Dos Picos will be built for rapid expansion. The initial system will include 50 miles of gathering lines, compression facilities, and access to third-party processing plants with an estimated completion by mid-2021.

 

Pinnacle Midstream II

Formed in early 2019, Pinnacle Midstream II LLC provides innovative, customer-focused services including natural gas gathering and processing, crude oil gathering and stabilization, crude oil transloading and storage services, produced water gathering and saltwater disposal wells, and product marketing and support. 

www.pinnaclemidstream.com

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

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Staking a (Bigger) Claim in the San Andres

Staking a (Bigger) Claim in the San Andres

Stakeholder Midstream found its sweet spot four years ago in the Permian’s San Andres play when producers there were only starting to discover the formation’s new potential with applied horizontal drilling. Reese Energy Consulting today is following the latest moves by San Antonio-based Stakeholder, which quickly set its sights on the San Andres and the need for more gathering infrastructure as crude volumes began to surge. The company first constructed a crude system in 2017 that included 90 miles of pipe, a storage terminal, and multiple downstream pipeline connections. An expansion followed a short year later with the addition of more gathering lines, pump stations, and storage capacity. At the same time, Stakeholder announced it would build a gas gathering, treating, and processing system that would address the inherent challenges of the San Andres’ sour gas stream. But this independent wasn’t done yet. After acquiring and integrating a second crude oil gathering system in August, Stakeholder now has purchased the San Andres gas gathering and processing assets from Santa Fe Midstream. And staking another claim in the neighborhood it knows best.

 

Stakeholder Midstream

Stakeholder Midstream is dedicated to solving problems and creating value for our customers. Our experienced team has a strong history of execution through all key phases of the midstream value chain. Stakeholder’s goal is to build enduring relationships with all constituents based on hard work, trust, ethical behavior and equitable dealings. Supported by a significant equity commitment from EnCap Flatrock Midstream, we have the ability to move quickly to provide the infrastructure solutions and services that our customers require.

www.stakeholdermidstream.com

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

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Third Coast Gets Skinny

Third Coast Gets Skinny

Houston-based Third Coast Midstream this year has shed weight faster than a Jenny Craig plan to focus exclusively on its core Gulf of Mexico infrastructure platform. The company in June sold its Southeast natural gas transmission business to Black Bear Transmission. That deal included six intrastate gas pipelines spanning 1,400 miles in Ala., La., and Miss., with a total capacity of 800+ MMCFD. In October, Third Coast sold its Cushing crude oil storage business, which consisted of five tanks and 3 MMBbls of capacity, to an affiliate of Hartree Partners. Now, just in time for gingerbread, Third Coast has divested its East Texas gathering, processing, and fractionation business to J. Global Energy Midstream, an oil trading and energy business development firm headquartered in Houston, with offices in South America, Europe, and Asia. The East Texas assets include a 710-mile oil and gas gathering system, a 23-mile inbound liquids pipeline, a 12-mile outbound liquids pipeline, three cryogenic processing plants with a total 50 MMCFD of capacity, 4,000 BPD of trucking capacity, and a rail system with 3,000 BPD of capacity.

Third Coast Midstream

Third Coast Midstream, LLC is a full-service midstream company headquartered in Houston, Texas. Their operations are focused on delivering efficient, safe, and dependable service to our customers. The company’s assets include natural gas transmission and gathering pipelines, crude oil pipelines, natural gas processing plants, NGL fractionation facilities, NGL pipelines, and terminals. 

www.3cmidstream.com

What do you think? Learn more about REC at www.ReeseEnergyConsulting.com.