Permian basin stationed EagleClaw Midstream Venture and its financial backer have agreed to sell the company to funds managed by private equity business Blackstone for approximately $2 billion.
EagleClaw and sponsor EnCap Flatrock Midstream said the all-cash transaction is expected to close by the end of July 2017.
The deal includes approximately $1.25 billion in stapled debt financing provided by Jefferies LLC.
EagleClaw is the largest privately held midstream operator in the Permian’s Delaware Basin in West Texas.
The company’s assets are located in Reeves, Ward and Culberson counties and include more than 375 miles of natural gas gathering pipelines and 320 million cubic feet per day (MMcf/d) of processing capacity with an additional 400 MMcf/d under construction.
EagleClaw will retain its name and operate as a Blackstone portfolio company. The leadership team and fundamentally all of the company’s employees will remain in their current roles and are investing alongside Blackstone in this transaction.
EagleClaw president and chief executive Bob Milam said: “This transaction is a very exciting moment in our advancing growth story.
“As we begin a new chapter, we will continue to deliver the same outstanding level of service our customers expect while we work with Blackstone to deploy additional capital and to expand our footprint in the Delaware Basin.
“Blackstone has a deep understanding of the compelling fundamentals of the upstream and midstream economics in the Permian, an outstanding reputation as an investor in the energy sector and the scale to take EagleClaw to the next level. We are proud to have their support and look forward to a long and successful relationship.”
David Foley, Senior Managing Director of Blackstone and CEO of Blackstone Energy Partners added: “Our extensive experience over the past two decades as an investor across all segments of the energy sector, access to capital on a very large scale and firsthand knowledge of the Permian as an owner of oil and gas producers in this region make Blackstone uniquely well qualified to acquire EagleClaw and to build upon the solid foundation started with the investment of Bill Waldrip and the folks at EnCap Flatrock Midstream.”