Outrigger Energy sells Permian Basin midstream assets for up to $1.5 billion

Outrigger

Outrigger Permian includes natural gas gathering and processing and crude oil gathering systems

Outrigger Energy says Targa Resources Corp. has agreed to acquire its three midstream subsidiaries in the Permian Basin for up to $1.5 billion cash, according to a press release.

Click here for video: CEO Mike Swihart explains how well automation reduces costs, boosts production for Permian Basin operators. Systems start at $3,000 fully installed by Production Lift Technologies of Midland, Texas.

“We are very pleased with the midstream systems we’ve developed in the Midland and Delaware Basins and this transaction with Targa represents a great outcome for our customers, employees, and investors. The success of this transaction is a testament to Outrigger’s ability to develop midstream solutions for our producer customers and diligently execute these projects to ensure high quality midstream infrastructure is in place to serve them,” said Dave Keanini, Outrigger’s President & CEO.

Outrigger Permian includes natural gas gathering and processing and crude oil gathering systems spanning Loving, Winkler, Ward, Reeves and Pecos Counties, Texas in the Delaware Basin, and Martin, Howard and Borden Counties, Texas in the Midland Basin.

“With our systems located in the highest growth areas of the Midland and Delaware Basins, it was extremely important for us to transfer our assets to a midstream company that has the experience, staffing, and resources to accommodate the growth rates these systems will experience over the next several years. We have complete confidence in Targa’s ability to exceed those expectations and believe our customers will be in very capable hands going forward,” said Keanini.

“Dave Keanini, Amit Jhunjhunwala and the full Outrigger team have been exceptional partners. This team has developed a series of great assets in a highly competitive marketplace and we’re excited to announce this transaction and the value created for our investors. We look forward to continuing our partnership with the Outrigger team and building on this success,” said James Cunningham, Managing Director at Denham Capital.