In our state of self-isolation and social distancing right now, it’s an opportune time to look at where our nation’s midstream operators stand and what they might be looking at in the month’s ahead. We’ve seen our majors take a hatchet to capital expenditures this year—and RMR will delve into that in the days following. But for today, we’re looking at two midstream companies who’ve recently come together to add infrastructure strength to the Haynesville.
Headquartered in Houston, Elevate Midstream Partners II is a private midstream services company focused on providing responsive, scalable, value-enhancing midstream solutions to exploration and production customers.
Align Midstream Partners is a Dallas-based midstream company focused on serving producers’ needs in emerging and established basins within the US. Align is concentrated on building greenfield midstream assets including gas, crude oil and water gathering pipelines, treating and gas processing plants, and salt water disposal wells in emerging basins.
Is it surprising anymore when private-equity firms merge two of their portfolio companies building and operating midstream infrastructure in the same basin? Probably not. Better to be growing that midstream platform than stirring up competition and cannibalism in the current landscape. And so it is for Tailwater Capital, which late last year combined Dallas-based Align Midstream and Houston-based Elevate Midstream—darn near kissing cousins in the Haynesville shale play with gas gathering, treating and processing assets. Following the merge, Tailwater set Elevate free, gifting the midstreamer with a $150 million equity commitment to seek out new acquisitions and greenfield development, while Align set forth to expand the now combined-company’s footprint.
A little backstory on this if you’re taking notes.
Elevate in 2018 acquired the assets of Woodland Midstream Partners and the Orion Pipeline, which consist of gas gathering, treating and processing assets in East Texas. This included 180 miles of pipeline, 19,000 Hp of compression, an 80 MMCFPD processing plant, and related dehydration and NGL stabilization equipment.
Align, on the other hand, operates a gas gathering pipeline system and a 400 GPM amine facility with more than 200 MMCFPD of residue takeaway with NGPL and Gulf South pipelines. The merged assets will provide extra processing and compression capabilities, including daily volumes of more than 300 MMCFPD. Align also plans to add approximately 180 miles of pipeline across Panola, Rusk and Harrison counties.
Can’t wait to see what lies ahead for Elevate Midstream in the Haynesville. We’ll stay tuned.
Tell us what you think.