Cardinal Midstream to acquire Delaware basin natural gas business

Cardinal Midstream Partners, Dallas, has agreed to acquire the West Texas Delaware basin natural gas gathering and processing business of Medallion Midstream Services.

The system spans Reeves and Loving counties and includes about 80 miles of high- and low-pressure natural gas gathering pipelines and a 140 MMcfd natural gas processing plant.

Cardinal Midstream Partners, formed in 2022, secured an initial capital commitment of $300 million from EnCap Flatrock Midstream.

The natural gas business acquisition is expected to close early 2023, subject to customary closing conditions.