• Acquisition of Rattler Midstream’s Pecos Gas Gathering System further expands the Company’s natural gas gathering and processing capabilities in the Delaware Basin
• Newly formed Brazos Midland completes first acquisition in the Midland Basin; plans to expand capabilities to support ongoing producer customers’ growth in the region
Brazos Midstream (Brazos) announced two significant transactions in the Permian Basin region of West Texas. Brazos Delaware, LLC acquired the Pecos Gas Gathering System (Pecos) from Diamondback Energy, Inc. (Diamondback) and its midstream affiliate Rattler Midstream (Rattler). Additionally, newly-formed Brazos Midland, LLC has closed on the acquisition of Diamondback’s Mustang Springs Gas Gathering System, dba Permian Gathering, LLC (Mustang Springs).
Delaware Basin Acquisition
Brazos has operated the Pecos Gas Gathering System, located in the Southern Delaware Basin, on behalf of Diamondback and Rattler since 2017. The system will add an additional 150 miles of natural gas gathering pipeline and four associated compressor stations, complementing the Company’s existing high pressure natural gas gathering system and cryogenic processing complex located in Reeves County, Texas. Brazos will expand the Pecos system to provide additional gas gathering and processing services for Diamondback’s ongoing development as well as connections to new third-party producers in the area. The Pecos system assets were acquired by Brazos Delaware, LLC, one of the largest privately-held gathering and processing companies in the Permian Basin.
Midland Basin Acquisition
The Mustang Springs Gas Gathering System, located in the Northern Midland Basin, currently serves Diamondback in central Martin County, Texas. The Mustang Springs system will be expanded to serve both Diamondback and other producers’ significant growth plans in the area. Mustang Springs was acquired by Brazos Midland, LLC, a new entity formed to develop natural gas gathering and processing infrastructure in the Northern Midland Basin.
“We are excited to announce both acquisitions and the expansion of our relationship with Diamondback, one of the Permian’s premier oil and gas operators,” said Brad Iles, Brazos Chief Executive Officer. “The Pecos system is a perfect bolt-on acquisition for our existing Delaware Basin business and will allow Brazos to extend our reach to new producer customers.” Iles continued, “We are also very pleased to form Brazos Midland to complete the acquisition of a high-quality asset supported by Diamondback’s strong existing production and robust development plans, which provides a great platform in the core of the Midland Basin with tremendous potential for third-party growth. We look forward to continued growth across a broader Permian platform.”
