Oryx Midstream to Build New Regional Crude Oil Transport Pipeline in the Delaware Basin
19 September 2017 - 6:30AM
Business Wire
WPX Energy Makes Delaware Basin Dedication to
New System
Oryx Midstream Services II, LLC (Oryx II) announced today that
it will build a new regional crude oil transportation pipeline
serving the Delaware Basin with initial capacity of up to 400,000
barrels per day. Oryx II recently closed on a long-term regional
oil transportation agreement with WPX Energy (NYSE: WPX) and other
producers bringing total acres committed to Oryx II to
approximately 300,000 dedicated acres. When combined with Oryx
Midstream Services, LLC (Oryx I), the total Oryx Delaware basin
dedication footprint and system capacity will be in excess of
850,000 acres and 600,000 barrels per day, respectively.
Construction will begin immediately on the new 220-mile regional
transport line that will provide receipt points from the Carlsbad,
Stateline, Pecos and Pyote areas, and deliver crude to Crane and
Midland, Texas. The system, comprised of 16-, 20- and 24-inch
lines, will have an initial capacity of up to 400,000 barrels per
day with the ability to expand based on shipper needs. It will
serve production from every active county in the Delaware Basin
including Lea and Eddy counties in New Mexico and Loving, Reeves,
Ward, Pecos, Winkler and Culberson counties in Texas. The new crude
oil pipeline will be constructed in phases and is expected to be in
full service by the end of 2018.
“As ongoing improvements are made in drilling technologies and
rig counts in the Delaware Basin increase, production growth from
Oryx’s customer base, including WPX, continues to be strong. With
this strong production growth comes transportation bottlenecks, an
issue that this new pipeline will address, providing much-needed
takeaway capacity in the area,” said Oryx Chief Executive Officer
Brett Wiggs. “The Oryx team remains focused on improving and
expanding our asset base, to not only meet producers’ current needs
but also anticipate the future needs of our customers.”
Karl Pfluger, Oryx President, said, “The combined footprint of
our crude gathering and transportation system is unparalleled.
Based on our current and future customers’ needs, we are
considering strategic opportunities to leverage the unique scale of
our combined footprint to better serve producers in the Delaware
basin. One of these strategic opportunities includes a potential
long-haul transport system to the Gulf Coast."
Oryx I was launched in 2014 by an initial equity commitment
totaling up to $300 million from Quantum Energy Partners, Post Oak
Energy Capital, Wells Fargo Energy Capital, Oryx management and
other private investors. In March 2017, Oryx II closed on an equity
commitment of $340 million from the same sponsor group, bringing
the total commitment to Oryx to $640 million.
About Oryx Midstream Services
Midland-based Oryx Midstream Services is focused on developing
midstream infrastructure in the Delaware Basin in New Mexico and
Texas. Led by an experienced team with more than 145 years of
experience in the oil and gas industry, Oryx is dedicated to
providing producers with solutions and flexibility through a full
suite of midstream services. For more information visit
www.oryxmidstream.com.
About Quantum Energy Partners
Quantum Energy Partners is a leading provider of private equity
capital to the global energy industry, having managed together with
its affiliates more than $13 billion in equity commitments since
inception. For more information on Quantum, please visit
www.quantumep.com. For investor relations, please contact Michael
Dalton at (713) 452-2000.
About Post Oak Energy Capital
Post Oak, which was established in 2006, is an energy-focused
private equity firm based in Houston. Its management team has
executive management experience and a broad network in the energy
business as well as significant expertise in private equity
investments, operations, development, finance, acquisitions and
divestitures. The firm pursues private equity investments primarily
in the upstream sector of the oil and gas industry in North America
and, to a lesser extent, in oil field services and related
infrastructure. Post Oak works in close partnership with operating
management teams to build businesses, accelerate growth and enhance
shareholder value. Post Oak’s website is www.postoakenergy.com.
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M2H CommunicationsMeredith Hargrove Howard,
210-737-4478meredith@m2hpr.com