Only in Texas could two midstream CEOs look out their office windows and literally gaze upon their joint venture reward. In this case, a gathering system comprised of more than 230 miles of pipelines and 200,000 Bbls of crude oil storage across four counties.
RMR today is following the latest news from Midland-based companies Rattler Midstream and Oryx Midstream, which recently announced the two will acquire Reliance Energy, also based in Midland, for $355 million in cash. The joint venture expands Rattler’s midstream footprint in the Permian and gives Oryx an entry there to offer its customers added options to move their production. Rattler’s parent, Diamondback Energy, is one of six long-term Reliance customers. You might recall Diamondback spun off Rattler back in May, which then went on to launch the biggest energy IPO of the year raising $665 million. For its part, Oryx is the largest privately-held oil gathering and transportation business in the Delaware Basin, currently expanding its system to 1,180 miles of crude oil pipelines and 1,170,000 Bbls of storage.
Wonder who’s buying lunch…
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