April 8, 2019 [Chron] – New York private equity firm Stonepeak Infrastructure Partners bought Permian Basin-focused pipeline operator Oryx Midstream in a $3.6 billion deal. The two companies announced the deal on Tuesday with Stonepeak buying all of Oryx’s assets.
With more than 1,200 miles of pipeline and 2.1 million barrels of storage, Oryx is touted as the largest privately-held crude oil pipeline and storage terminal operator in the Permian Basin of West Texas and New Mexico.
“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,” Oryx Midstream CEO Brett Wiggs said in a statement.
Under the deal with Stonepeak, Oryx will be able to keep its name and headquarters in Midland. Oryx was in the middle of an expansion project at the time of the sale. Once complete, the company will be able to move 900,000 barrels of crude oil per day for its 20 customers.
In a statement, Stonepeak partner and energy business head Jack Howell described Oryx as the most attractive Permian Basin midstream company that the private equity firm had evaluated.
“Our critical focus will be on continuing to provide Oryx’s diversified customer base with best in class service offerings to accommodate their growing production while also pursuing new commercial opportunities across the value-chain,” Howell said.
Oryx was launched and owned by affiliates of Quantum Energy Partners, Post Oak Energy Capital, Concho Resources, WPX Energy and other investors in 2013.
The Midland pipeline operator recently completed construction on the first phase of a crude oil gathering system in an area of the Permian Basin known as the southern Delaware Basin, which includes parts of southern New Mexico and West Texas.
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