EnLink Midstream acquires Permian Basin processing facility

“By obtaining full ownership of the Deadwood processing facility, EnLink Midstream is able to enhance its presence in the Midland Basin, which is one of the most economic regions for oil and gas production in the U.S”

DALLAS – EnLink Midstream Partners, LP (NYSE: ENLK) has announced that its subsidiary has acquired a 50-per cent ownership interest in the Deadwood natural gas processing facility from a subsidiary of Apache Corporation (NYSE: APA) for approximately $40 million.

The facility is located in Glasscock County, Texas in the Permian Basin.

Barry E. Davis, EnLink Midstream president and CEO.

“We consider the Deadwood facility to be an important piece of our growing infrastructure in the Permian Basin,” said Barry E. Davis, EnLink Midstream president and CEO.

Pursuant to a 2011 agreement, EnLink and Apache jointly funded the development of a new-build processing facility in which each company held a 50 per cent undivided ownership interest.

EnLink managed the plant’s initial construction and has operated the facility since its startup. The plant has a capacity of 58 million cubic feet per day (MMcf/d), and is currently processing approximately 45 MMcf/d.

The acquisition brings EnLink’s net processing capacity in the Permian Basin to 343 MMcf/d, excluding the Riptide processing plant, which is currently under construction and will add another 100 MMcf/d of processing capacity in the Midland Basin.

“By obtaining full ownership of the Deadwood processing facility, EnLink is able to enhance its presence in the Midland Basin, which is one of the most economic regions for oil and gas production in the US,” said Davis.

“We remain confident in our ability to execute on additional growth opportunities from our diverse platform of assets and services in this key growth region.”