Rattler and Oryx to buy Reliance Gathering for $355m in cash. Credit: Arulonline from Pixabay.

Diamondback Energy subsidiary Rattler Midstream and Oryx Midstream have signed an agreement to acquire Reliance Gathering for $355m.

The transaction will be carried out through a newly formed joint venture (JV).

The acquisition includes a crude oil gathering system of over 230 miles of regional transportation pipelines and more than 200,000 barrels of crude oil storage across the Texas counties of Midland, Martin, Andrews, and Ector.

It also comprises a current system throughput of over 110,000 barrels per day from six oil and gas operators, including Diamondback.

The acquisition will also involve more than 160,000 gross acres in the Northern Midland Basin dedicated under long-term, fixed-fee agreements.

Rattler Midstream general partner CEO Travis Stice said: “Continuing its wellhead to water strategy, Diamondback, through Rattler, will now participate in transporting these crude oil barrels from the wellhead through the Reliance Gathering system and the Epic Crude Pipeline to docks and refineries around Corpus Christi.”

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Oryx will operate the system following the closing of the transaction.

Oryx CEO Brett Wiggs said: “We are excited about this acquisition as it marks our entry into the Midland Basin, solidifies Oryx as a pure-play, crude oil pipeline operator, and further enhances our ability to serve strong, high-quality producer customers, both new and existing.

“Additionally, we look forward to working closely with Rattler and continuing our relationship with Diamondback, and we appreciate the confidence they have placed in us to operate this significant asset.”

The transaction is subject to certain closing conditions of the purchase and sale agreement and is expected to close in the fourth quarter of this year.

Oryx Midstream is a portfolio company of Stonepeak Infrastructure.