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Blackstone to acquire EagleClaw Midstream Ventures for $2bn

Published 18 April 2017

EagleClaw Midstream Ventures has entered into an agreement to sell the company to funds managed by Blackstone Group for nearly $2bn.

The sale agreement has been signed by EagleClaw and its financial sponsor, EnCap Flatrock Midstream with Blackstone Energy Partners and Blackstone Capital Partners.

A privately held midstream operator in the Permian’s Delaware Basin in West Texas, EagleClaw serves many oil and gas producers in the region.

Headquartered in Midland, Texas, EagleClaw offers natural gas producers a range of midstream services including gathering, compression, treating, processing and transportation.

It assets include 375 miles of natural gas gathering pipelines and 320 million cubic feet per day (MMcf/d) of processing capacity with an additional 400 MMcf/d under construction. The assets are located in Reeves, Ward and Culberson counties.

After the completion of the transaction, EagleClaw will retain its name and operate as one of the portfolio companies of  Blackstone.

The all-cash transaction, which includes nearly $1.25bn in stapled debt financing provided by Jefferies, is expected to be completed by the end of July 2017.

EagleClaw president and CEO Bob Milam said: “As we begin a new chapter, we will continue to deliver the same outstanding level of service our customers expect while we work with Blackstone to deploy additional capital and to expand our footprint in the Delaware Basin.

“Blackstone has a deep understanding of the compelling fundamentals of the upstream and midstream economics in the Permian, an outstanding reputation as an investor in the energy sector and the scale to take EagleClaw to the next level. We are proud to have their support and look forward to a long and successful relationship.”

While Jefferies LLC acted as EagleClaw’s exclusive financial adviser in connection with the transaction, Blackstone was advised by Trevor Heinzinger of Morgan Stanley & Co., and Skip McGee of Intrepid Partners.

In August last year, US based private equity and asset management company Blackstone Group said that it was partnering with two oil and gas companies to invest $1.5bn for development of assets in the Permian shale formation.


Image: EagleClaw will retain its name after the completion of the transaction. Photo: courtesy of supakitmod/ FreeDigitalPhotos.net.