Altus Midstream said Oct. 21 it will combine with BCP Raptor Holdco in an all-stock transaction to create a pure-play Permian Basin midstream company valued at $9 billion. BCP is the parent company of Midland’s EagleClaw Midstream, which includes EagleClaw Midstream Ventures, Caprock Midstream, Pinnacle Midstream and 26.7 percent interest in Permian Highway pipeline. Altus said the combination forms “the largest integrated midstream company in the Delaware Basin.” It will operate about 2 bcfd of newly constructed cryogenic natural gas processing facilities with more than 850,000 acres in southern Delaware Basin under fee-based, long-term dedications. Closing is expected in 2022Q1.
The unnamed company will hold interest in four Permian takeaway pipelines – Permian Highway, Gulf Coast Express, Shin Oak and EPIC.
The combine will operate in two segments – midstream logistics and pipeline transportation – and maintain headquarters in Midland. The management team will be led by Jamie Welch, EagleClaw Midstream president and CEO. Apache, which will continue as a natural gas gathering and processing customer, currently owns 79 percent of Altus and reportedly has agreed to vote in favor of the deal.
Welch said, “The combination creates the largest pure-play midstream company in one of the world’s most prolific hydrocarbon basins, providing the scale, operational capabilities and fully integrated service offerings necessary for long-term success. The pro forma enterprise is well positioned to capitalize on accelerating activity in Delaware Basin.” Enverus said BCP will own 75 percent of the combine with 20 percent to Apache and 5 percent to Altus shareholders.