Aug. 13, 2017

TPG Growth to acquire Discovery Midstream

TPG Growth, the middle market and growth equity platform of global alternative asset firm TPG, has agreed to acquire Discovery Midstream, a Dallas-based provider of oil and natural gas gathering and natural gas processing services in the southern portion of Colorado's Denver-Julesburg Basin. Discovery's current management team will continue to run the company post-transaction and is investing alongside TPG Growth in this transaction.

Discovery's assets are located in Weld and Adams counties. The company is currently constructing more than 120 miles of pipeline and a 60 MMcf/d natural gas processing plant, which is expected to come online in 3Q17. The company plans to expand the plant capacity to 260 MMcf/d in 2018.

TPG Growth's legal advisor for the transaction is Vinson & Elkins LLP. Discovery's financial advisor for the transaction is Evercore, and its legal advisor is Weil, Gotshal & Manges LLP.

Summit and XTO to partner in Delaware Basin

Summit Midstream Partners LP has executed an agreement with XTO Energy Inc. to develop, own, and operate a new associated natural gas gathering and processing system servicing acreage located in the northern Delaware Basin in Eddy and Lea counties in New Mexico.

Summit will initially construct a gathering and processing system with high and low pressure gathering and discharge pipelines, two compressor stations and a cryogenic processing plant with 60 MMcf/d of processing capacity. Summit's processing complex will have the ability to be expanded to over 600 MMcf/d of processing capacity, as warranted. The initial phase of the project is expected to be operational on or before June 1, 2018 at a total investment cost of approximately $110 million.

Greenfield secures equity commitment from EnCap Flatrock Midstream

Greenfield Midstream LLC has secured an initial $300 million equity commitment from EnCap Flatrock Midstream. Headquartered in Houston and established in 2017, Greenfield Midstream is a privately-held energy company focused on the organic development of midstream infrastructure across North America.

Vaquero sees bank revolver increase

Vaquero Midstream and its bank group have agreed to increase the company's revolving line of credit from $40 million to $95 million. The increased bank capacity will be used to support the construction of a second 200MMSCFD cryogenic processing plant at the existing Caymus plant site located in Pecos County of the Southern Delaware Basin.

Vaquero's 30" and 24" Lariat rich-gas gathering header transverses northwest from the Caymus facility near Waha through the heart of some of the highest GOR (Gas-Oil Ratio) production in the Southern Delaware Basin.

Upon completion of Caymus II plant construction, Vaquero will have 400 MMSCFD of processing capacity in service at the site, with further expansion capability to over 1 BSCFD. Construction is estimated to be complete in the first quarter of 2018.

PAA to expand portions of Delaware Basin to Cushing Pipeline System

A subsidiary of Plains All American Pipeline LP has received sufficient committed volume from shippers to expand portions of its pipeline systems to accommodate a volume increase of approximately 120,000 barrels per day of movements from the Delaware Basin and Midland to Cushing, OK.

The committed volume will move on a combination of new and existing pipelines. The Partnership plans to extend its Sunrise Pipeline system, which currently originates at Midland and connects with Colorado City, by building approximately 180-miles of 24-inch pipeline from Colorado City, TX to Wichita Falls, TX. The balance of the capacity will be provided by a combination of spare capacity and capacity enhancements to existing pipelines, which include capacity expansions to the Delaware Basin system of up to 200,000 b/d. The Pipeline system will deliver to Plains' and third-party terminals in Cushing, OK. Subject to receipt of permits and approvals, the additional capacity is expected to be operational in early to mid-2019.

Brazos completes credit facility expansion

Brazos Midstream Holdings LLC's subsidiary, Brazos Delaware LLC, has completed an expansion of its senior credit facility to $150 million in commitments from a syndicate of banks. Additionally, the facility has an accordion feature, which can expand total commitments to $200 million. These funds support the ongoing expansion of Brazos' crude gathering and natural gas gathering and processing systems in the Southern Delaware Basin.

Brazos' midstream investment is supported by long-term producer dedications covering over 200,000 acres in Ward, Reeves, and Pecos counties, Texas. The company commenced operation of its 60 MMcf/d natural gas processing plant (Comanche I) in December 2016 and is currently constructing a second gas processing plant (Comanche II), which will add 200 MMcf/d of incremental processing capacity. Comanche II is expected to be operational during 1Q18. Brazos plans to further expand its 260 MMcf/d of operated processing capacity during 2018.

BOK Financial and Cadence Bank served as joint lead arrangers of the facility which was syndicated to a total of nine banks. Other participants include ABN Amro, Amegy Bank, BBVA Compass, Iberia Bank, JP Morgan, Wells Fargo, and West Texas National Bank. Harris Finley Bogle provided legal counsel to Brazos and Thompson & Knight served as counsel to the lender group.