Hint Midstream to Purchase Gasoline Property in Northern Delaware Basin

Houston-based Hint Midstream Companions II, LLC is buying the pure gasoline gathering and transportation property of LM Vitality Delaware, LLC within the Northern Delaware Basin.

Positioned in Eddy and Lea counties in New Mexico, LM Vitality’s pure gasoline gathering and transportation system consists of high- and low-pressure gasoline pipelines with related compression, dehydration, condensate dealing with, and vapor restoration capabilities, Hint mentioned in a information launch. The monetary particulars of the acquisition weren’t disclosed.

At present, LM Vitality is within the means of establishing a number of new compressor stations, new gathering pipelines, and a 20-inch diameter high-pressure transportation pipeline that can join the prevailing gasoline gathering system to plenty of gasoline processing services close to Loving, New Mexico.

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Upon completion of those initiatives, the system will consist of roughly 170 miles of pipeline and 12 compressor stations, with a complete design capability of 650 million cubic ft per day. The system has over 80,000 devoted acres and is supported by long-term, fixed-fee contracts from a number of producers, in line with the discharge.

“This acquisition marks a major milestone for Hint as we enter the Northern Delaware Basin. We’re excited to construct upon LM Vitality’s already well-executed system and observe file of success,” Hint CEO Josh Weber mentioned. “With substantial pure gasoline midstream constraints throughout the Northern Delaware, we’re dedicated to increasing LM Vitality’s property and offering further providers for the area’s producers”.

“I’m sincerely grateful to our clients, whose success was our tailwind during the last 5 years. It was crucial to us to discover a successor who would proceed to deal with customer support and facilitate our clients’ development,” LM Vitality CEO Elliot Gerson mentioned. “Hint is a superb workforce who we all know will execute, and we’re excited to observe them take this enterprise to the subsequent stage”.

Hint is a portfolio firm of Quantum Capital Group, whereas LM Vitality is a portfolio firm of Outdated Ironsides Vitality, LLC.

“We’re happy to develop our longstanding partnership with the Hint workforce,” Blake Webster, Companion with Quantum, mentioned. “We’re assured the business, operational, and mission improvement capabilities of the Hint administration workforce, mixed with our monetary assist, will permit Hint to construct a scalable pure gasoline infrastructure platform providing aggressive midstream options to Delaware producers”.

Sean O’Neill, Managing Companion of Outdated Ironsides Vitality, mentioned, “LM Vitality was established to construct a number one midstream platform designed across the wants of its clients and companions. I’m extremely happy with the LM workforce for executing its objectives and growing this crucial midstream answer for its world-class producer base in an space of nice exercise and infrastructure want. Congratulations to Quantum and the Hint workforce, who’re well-positioned to proceed rising this nice asset”.

In reference to the transaction, Quantum Senior Advisor Jack Harper has joined the Hint Board of Administrators. Previous to becoming a member of Quantum, Harper served as Govt Vice President, Decrease 48 at ConocoPhillips and was a member of its Govt Committee.

Hint Midstream mentioned it has a confirmed observe file of success within the improvement and operations of large-scale midstream infrastructure initiatives. In 2022, Hint efficiently exited its earlier midstream enterprise with the sale of its Haynesville property to Williams and its Mid-Continent property to Vitality Switch for a mixed transaction worth of roughly $1.5 billion, in line with the discharge.

LM Vitality Holdings, LLC is a midstream oil and gasoline firm primarily based in Dallas, Texas.

To contact the creator, e mail rocky.teodoro@rigzone.com