Subsidiaries of Lucid Energy Group II LLC, Dallas, have bought assets of Agave Energy Co., a natural gas gatherer and processor, and all outstanding stock of Agave Energy Holdings Inc.
Agave’s high-growth properties are mainly in the Delaware basin, concentrated in Eddy and Lea counties, NM. They include 280 MMcfd of gas processing capacity, more than 1,300 miles of gathering pipeline, and more than 60,000 hp of compression. The company also has assets in the Powder River basin of eastern Wyoming.
In the Delaware basin, Lucid Energy plans to expand the Agave gathering system and is adding a 200-MMcfd cryogenic processing plant at the acquired company’s Red Hills complex in Lea County.
At commissioning in mid-2017, total capacity at the complex will be 310 MMcfd.
The Agave purchase, terms of which weren’t reported, boosts holdings of privately held Lucid companies to 660 MMcfd of gas processing capacity and more than 3,300 miles of pipeline.
Lucid I and Lucid II have equity capital commitments exceeding $850 million from EnCap Flatrock Midstream, San Antonio.