WhiteWater Midstream and its financial sponsors, Denham Capital Management, and Ridgemont Equity Partners, said today they’re selling WhiteWater to funds managed by First Infrastructure Capital Advisors.
As part of the deal, First Infrastructure Capital will acquire WhiteWater’s 60% stake in Agua Blanca, a Delaware Basin intrastate natural gas pipeline system.
In conjunction with the deal, investment firm First Infrastructure also agreed to acquire WPX Energy’s 20% ownership stake in Agua Blanca. No purchase prices were revealed, Kallanish Energy reports.
Agua Blanca is a natural gas residue pipeline servicing the Delaware, consisting of roughly 90 miles of 36-inch line and 70 miles of smaller diameter pipeline crossing portions of Culberson, Loving, Pecos, Reeves, Ward and Winkler counties in Texas.
The initial capacity is roughly 1.4 billion cubic feet per day (Bcf/d), supported by multiple long-term, take-or-pay contracts. The Agua Blanca system has direct downstream connections which provide shippers on the system access to multiple markets.
“We are very excited about our new partnership with First Infrastructure Capital, who provides us with access to strong construction and operations expertise and access to significant capital to continue to expand the Agua Blanca system and execute other projects under development,” said Christer Rundlof, CEO of WhiteWater.
“WhiteWater has created a unique cornerstone infrastructure asset that maximizes natural gas take-away options for producers in the Delaware Basin,” said Dan Shapiro, managing partner of First Infrastructure.
WhiteWater management will remain with the company. Closing is expected in the first quarter of 2019.
WhiteWater Midstream is a Texas-based, independent midstream company. Denham Capital is an energy-focused global private equity firm.
Ridgemont Equity Partners is a North Carolina-based middle market buyout and growth equity investor. First Infrastructure Capital Advisors is a Houston-based investment firm specializing in companies operating in the midstream, downstream, electric power, telecommunications, and renewable energy industries.
Tudor, Pickering, Holt & Co. and Credit Suisse Securities (USA) acted as financial advisors to WhiteWater, Denham, and Ridgemont in connection with the transaction.
Simmons Energy, a division of Piper Jaffray, acted as financial advisor to First Infrastructure Capital. Sidley Austin served as lead counsel for WhiteWater and Denham, while Troutman Sanders acted as lead counsel for Ridgemont.
Latham & Watkins acted as lead counsel for WhiteWater management, and Milbank, Tweed, Hadley & McCloy served as lead counsel for First Infrastructure Capital.
This post appeared first on Kallanish Energy News.