Sept. 05–Midland’s EagleClaw Midstream is buying Humble-based Caprock Midstream for $950 million as one Texas pipeline firm scoops up a rival.
The two private equity-backed pipeline and processing firms are both focused on the Permian’s Delaware Basin, which is the fastest growing part of the basin in West Texas and New Mexico.
Caprock, which was founded in 2015, was jumpstarted with funding from Dallas-based Energy Spectrum Capital while the larger EagleClaw is supported by New York-based Blackstone Energy. Blackstone last year bought EagleClaw for $2 billion from a Texas private equity form, San Antonio’s EnCap Flatrock Midstream.
The new Caprock acquisition is expected to close later this year.
The combined EagleClaw is by far the largest privately owned oil and gas pipeline and processing player in the booming West Texas basin.
EagleClaw recently partnered with Houston pipeline giant Kinder Morgan to start building the $2 billion Permian Highway Pipeline to carry natural gas hundreds of miles from the Permian to the Houston region.
“Following our recent announcement of the Permian Highway Pipeline in partnership with Kinder Morgan, the acquisition of Caprock is another exciting chapter in the continued growth story of EagleClaw,” said EagleClaw President Jamie Welch.
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