The JV, Amarillo Rattler, owned 50% by Amarillo and 50% by a Rattler affiliate, currently owns/operates the Yellow Rose gas gathering and processing system. Said system features estimated total processing capacity of 40,000 million cubic feet per day (Mmcf/d) and over 84 miles of gathering and regional transportation pipelines in the Texas counties of Dawson, Martin, and Andrews.
Amarillo Rattler intends to construct and operate a new 60,000 Mmcf/d natural gas cryogenic processing plant in Martin County, as well as incremental gas gathering and regional transportation pipelines.
“We are very pleased to partner with Rattler on this exciting new natural gas focused midstream JV in the Midland Basin,” said Dan Revers, managing partner and founder of private equity firm ArcLight.
Amarillo Rattler anticipates the new processing plant will begin full commercial operations in mid-2021. Independent producer Diamondback has contracted for an unrevealed portion of the new processing plant’s capacity, pursuant to a gas gathering and processing agreement entered into with the JV in exchange for Diamondback’s dedication of certain leasehold interests to that agreement.