Sanchez Production Partners (SPP) has agreed to buy a 50% interest in Carnero Processing for about $48million.
SPP also announced plans to buy production assets in South Texas and a lease for a tract of land leased from the Calhoun Port Authority in Point Comfort, Texas.
SPP is focused on the development and operation of North American assets.
It owns an oil and natural gas processing system in the Eagle Ford, Texas, and a 50% interest in a gathering system in South Texas.
It also owns producing reserves in Eagle Ford, the Gulf Coast region of Texas and Louisiana, and across several basins in Oklahoma and Kansas.
Gerry Willinger, chief executive officer of SPP, said: “The transactions announced today further extend our business development relationship with Sanchez Energy, a company that has a substantial inventory of midstream and production assets with characteristics favorable to the MLP model.
“We anticipate the transactions will increase SPP’s midstream and production revenue and Adjusted EBITDA as we complete 2016 and head into 2017.”