Stonepeak Infrastructure Partners said this morning funds the private equity firm manages are acquiring all the assets of Oryx Midstream for $3.6 billion in cash.
Affiliates of Quantum Energy Partners, Post Oak Energy Capital, Concho Resources, WPX Energy, and other, unnamed investors were the Oryx sellers, Kallanish Energy reports.
Oryx will retain its name and continue to be headquartered in Midland, Texas. Its leadership team, led by Brett Wiggs and Karl Pfluger, will remain in their current roles and are investing with Stonepeak in this deal.
“We are grateful for our productive five-year relationship with Quantum and Post Oak, whose knowledge and industry expertise were strong factors in our growth and success to-date,” said Wiggs, CEO of Oryx.
Oryx is the largest privately-held midstream crude operator in the Permian Basin. The company owns and operates a crude oil gathering and transportation system underpinned by nearly one million acres under long-term dedications from more than 20 customers.
The system’s 2.1 million barrels of storage and roughly 1,200 miles of in-service and under-construction pipeline span eight counties in Texas and two in New Mexico.
Upon completion of the remaining part of the system under construction, Oryx’s total Delaware Basin transportation capacity will ultimately exceed 900,000 barrels per day and access multiple takeaway options.
“Stonepeak is delighted to partner with the Oryx management team to build upon the impressive franchise they have established … ,” said Jack Howell, partner and head of Stonepeak’s energy business.
Barclays, acting through its investment bank, advised Stonepeak on the transaction. A Barclays-led arranger group including Goldman Sachs, RBC Capital Markets, and Jefferies has provided a $1.5 billion Term Loan B in support of the transaction, which will include a refinancing of the existing Oryx Southern Delaware Holdings facility and consolidation of Oryx Southern Delaware Holdings and Oryx Delaware Holdings into a single borrower.
Jefferies and Citi acted as financial advisors to Oryx and its sellers. Shearman and Sterling and Vinson & Elkins served as legal counsel to Oryx.
Stonepeak was represented by Hunton Andrews Kurth and Sidley Austin in the transaction, and Simpson Thatcher & Bartlett was the buyer’s fund counsel. Latham & Watkins represented the lender group.
Quantum Energy Partners is a private equity firm; Post Oak Energy Capital is an energy-focused private investor.
This post appeared first on Kallanish Energy News.