Funds affiliated to private equity firm Stonepeak Infrastructure Partners have reached an agreement to purchase all the assets of Oryx Southern Delaware and Oryx Delaware (collectively Oryx) in a $3.6bn transaction.
Oryx is a midstream crude operator serving clients in the Permian Basin.
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The sellers in the transaction are affiliates of Quantum Energy Partners, Post Oak Energy Capital, Concho Resources, WPX Energy and other investors.
The acquisition of Oryx will provide a platform to supply critical crude oil transportation services in the Permian Basin with differentiated services, an expansive geographic footprint, and scalable infrastructure to Stonepeak.
Even after the completion of the deal, Oryx will continue to operate under the same name.
Oryx’s leadership team is investing in the deal alongside Stonepeak.
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By GlobalDataThe company’s crude oil gathering and transportation system includes 2.1 million barrels of storage and around 1,200 miles of in-service and under-construction pipeline. The pipeline network covers the core of the Delaware Basin.
Once the construction of the remaining part of the system is completed, Oryx’s total transportation capacity in the Delaware Basin will increase to more than 900,000 barrels a day.
Oryx CEO Brett Wiggs said: “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.
“Most importantly, we are fortunate to have the opportunity to lead Oryx as we enter this next growth stage, maintaining strong relationships with our customers, and continuing to provide the highest level of service.”
Barclays served as Stonepeak’s adviser on the transaction. An arranger group led by Barclays and comprising Goldman Sachs, RBC Capital Markets, and Jefferies have provided a $1.5bn Term Loan B in support of the transaction.
Stonepeak Infrastructure Partners energy business head Jack Howell said: “Oryx is the most attractive private Permian midstream asset Stonepeak has evaluated and we view it as a strategic platform and a core North American crude infrastructure asset.
“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.”
