Cardinal Midstream Partners has completed the acquisition of natural gas gathering and processing assets Medallion Midstream Services in the Delaware basin in West Texas.
Financial terms of the deal, first announced in November 2022, have not been made public by the companies.
As part of the transaction, Cardinal acquired Medallion Midstream Services’ midstream infrastructure that covers natural gas gathering and processing solutions in the heart of the Delaware basin, for top-tier producer customers.
The sale included approximately 80 miles of high- and low-pressure natural gas gathering pipelines and a 140 million cubic feet per day (Mmcf/d) natural gas processing facility.
Cardinal CEO Doug Dormer said the transaction positions the firm for significant growth and future bolt-on opportunities in the US’ most prolific basins.
Dormer added: “We believe that clean burning natural gas will continue to play an important role in the energy mix, driving global demand, upstream production, and accompanying midstream infrastructure.
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“These assets are an ideal cornerstone for our business, and we look forward to meaningfully growing our footprint over time.”
Medallion CEO Randy Lentz said: “We are pleased to have completed this transaction as it allows us to enhance our focus on the continuing growth of Medallion’s crude oil gathering and transportation business, which serves its customers through a network of over 1,300 miles of pipeline spanning the Midland and southern Delaware basins.”
Medallion Midstream’s Midland basin operations include approximately 1,200 miles of regulated and non-regulated crude oil gathering and transportation pipelines.