Coronado Midstream, which owns natural gas gathering and processing facilities in the Permian Basin, has officially been acquired by Dallas-based EnLink Midstream for approximately $600 million, the company said in a press release Monday. The company first announced an initial agreement to acquire Coronoado via press release in early February. EnLink has footprints in the Barnett, Permian, Eagle Ford and Haynesville Shale Plays, just to name a few.
EnLink President and CEO Barry Davis commented on the acquisition:
“The Permian Baisn remains a strong and significant growth area for EnLink. We have identified and executed on strategic growth opportunities to expand our asset base in the region through over $1 billion of capital invested since 2011. These assets come with an experienced management team that is highly respected and known for outstanding performance, and we welcome Coronado’s talented employees into the EnLink family.”
EnLink’s acquisition of Coronado allows the company to connect the Coronado and Bearkat gas gathering pipeline systems to create a multi-county rich gas gathering and processing system. That system will offer extensive low pressure gathering services, cryogenic gas processing, and multiple delivery points for marketing consumer products. EnLink’s Bearkat plant is a natural gas processing plant located in Glassock County, Texas, that can produce up to 60 million cubic feet per day (MMcf/d).
With this acquisition, EnLink now owns and operates approximately 360 miles of gas gathering pipelines, approximately 300 MMcf/d of processing capacity as well as crude trucking and logistics services extending through seven counties in the core of the Midland Basin.