Midland, Texas-based Oryx Midstream knows exactly which side of its bread is buttered. That would be smack dab in the liquids-rich Delaware Basin, where Oryx has grown the largest privately held oil gathering and transportation business based on dedicated acreage and volumes. So, when Houston-based midstream big dog Targa Resources went in search of a buyer for its Delaware oil-gathering assets, Oryx pounced.
Oryx Midstream Services
Led by a team of experienced professionals with more than 200 years of combined experience in the energy industry, Oryx Midstream Services is a growing midstream company focused on developing, acquiring, owning and operating midstream assets in the Permian Basin region. We offer a full suite of midstream services from wellhead to market. Our capabilities include natural gas gathering, compression, treating and processing; crude oil gathering, handling and transportation; and NGL transportation.
RMR today is following news from Oryx Midstream, which just announced the purchase of Targa’s Permian gathering line and storage terminals for $135 million. This adds to the more than 1,200 miles of pipelines and 2.1 million Bbls of storage Oryx currently operates. Since the company’s sale in April to investment group Stonepeak Infrastructure Partners for $3.6 billion, Oryx has ramped up its construction and expansion projects throughout the Delaware, including a first-phase completion of another new crude oil gathering system.
The company created October 3rd a joint venture with Midland, Texas-based Rattler Midstream to acquire Reliance Gathering—also based in Midland—for $355 million in cash. Only in Texas can three midstream CEOs look out their office windows and literally gaze upon those assets. The Reliance gathering system is comprised of more than 230 miles of pipelines and 200,000 Bbls of crude oil storage across four counties. Wonder who bought lunch that day.
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.
What do you think?