Blackstone deal to buy EagleClaw Midstream for $2 billion

EagleClaw Midstream is the largest privately held midstream operator in the Delaware Basin. Company photo.

EagleClaw Midstream largest privately held midstream operator in Delaware Basin

EagleClaw Midstream Ventures announced on Monday it will be sold to funds managed by Blackstone Energy Partners and Blackstone Capital Partners for approximately $2 billion.

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According to a press release issued by the Midland, Texas based company, money from the all-cash deal includes about $1.25 billion in stapled debt financing provided by Jefferies LLC.

“This transaction is a very exciting moment in our advancing growth story,” said EagleClaw President and CEO Bob Milam.  He added “As we begin a new chapter, we will continue to deliver the same outstanding level of service our customers expect while we work with Blackstone to deploy additional capital and to expand our footprint in the Delaware Basin.”

EagleClaw is the largest privately held midstream operator in the Permian’s Delaware Basin located in West Texas.

Its assets are located in Reeves, Ward and Culberson and include over 375 miles of natural gas pipelines and 320 million cubic feet per day of processing capacity and an additional 400 MMcf/d under construction.

The company works with a number of the Delaware Basin’s leading oil and gas producers.  Following the sale, EagleClaw will retain its name and operate as a Blackstone portfolio company. The leadership team and most of the company’s employees will remain with the company and are investing with Blackstone in the transaction.

“Our extensive experience over the past two decades as an investor across all segments of the energy sector, access to capital on a very large scale and firsthand knowledge of the Permian as an owner of oil and gas producers in this region make Blackstone uniquely well qualified to acquire EagleClaw,” said David Foley, Senior Managing Director of Blackstone and CEO of Blackstone Energy Partners.

The sale should close by the end of July, 2017.