A New York-based private equity firm, Stonepeak Infrastructure Partners, has agreed to acquire Oryx Midstream – the Permian Basin’s largest privately owned midstream operator – in a US$3.6 billion deal.
Investors in Oryx Midstream include Concho Resources, Quantum Energy Partners, Post Oak Energy Capital and WPX Energy. Concho, Oryx’s largest shareholder, will pocket US$300 million from the sale.
Oryx will retain its name, its headquarters in Midland, Texas and its leadership team.
“As we begin our next chapter and new partnership with Stonepeak, we look forward to the operational and capital support they will provide our team as we continue to aggressively grow our footprint in the Permian Basin,” said Oryx’s CEO, Brett Wiggs. “Most importantly, we are fortunate to have the opportunity to lead Oryx as we enter this next growth stage, maintaining strong relationships with our customers, and continuing to provide the highest level of service.”
In a statement, Stonepeak said it had evaluated several potential midstream acquisitions in the Permian Basin before deciding on Oryx.
“Stonepeak is delighted to partner with the Oryx management team to build upon the impressive franchise they have established, and our extensive experience in the Permian uniquely qualifies us to help transition Oryx into the next phase of its evolution,” said the head of Stonepeak’s energy business, Jack Howell.
“Oryx is the most attractive private Permian midstream asset Stonepeak has evaluated and we view it as a strategic platform and a core North American crude infrastructure asset,” he added.
Oryx operates over 1,200 miles (1,931 km) of pipeline and 2.1 million barrels of storage capacity in the Permian Basin, the US’ most prolific oil and gas region. It recently completed the first phase of construction on a new crude-gathering system in the Permian’s Delaware sub-basin.
Once the remaining construction is complete, Oryx’s transportation capacity in the Delaware Basin alone will amount to over 900,000 bpd.