Kinetik Holdings said Thursday it agreed to acquire Permian Basin natural gas producer Durango Permian for $765 million in cash ($315 million) and stock. The agreement includes $75 million of contingent consideration for the Kings Landing complex under construction (capacity 200 million cfd). The Durango deal expands Kinetik’s operations in Chaves, Eddy and Lea counties in New Mexico in Delaware Basin, raises its processing capacity by 420 million cfd, doubles gathering pipelines mileage to 4,600, and adds more than 60 new customers.
Kinetik also said Thursday it agreed to sell its 16 percent interest in Gulf Coast Express pipeline to ArcLight Capital Partners for $540 million.
Following the Durango deal and the completion of Kings Landing in Eddy County in April 2025, Kinetik said it will own and operate more than 2.4 billion cfd of processing capacity in Delaware Basin and 4,600 miles of pipelines across eight counties.
Jamie Welch, president and CEO, said, “We are delighted to announce this series of strategic transactions that further our expansion into New Mexico and significantly increase our footprint across the northern Delaware Basin.” He said Thursday’s announcement represents about $1 billion of new investment for Kinetik, which has corporate offices in Midland and Houston.