Rattler Midstream, a subsidiary of Diamondback Energy, and Oryx Midstream Announce Joint Acquisition of Reliance Gathering
MIDLAND, Texas,
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Acquisition Highlights:
- Crude oil gathering system includes over 230 miles of gathering and regional transportation pipelines and approximately 200,000 barrels of crude oil storage in Midland, Martin, Andrews, and Ector counties
- Current system throughput of over 110,000 barrels per day from six substantial oil and gas operators, including Diamondback and other top-tier operators
- Over 160,000 gross acres in
Northern Midland Basin dedicated under long-term, fixed-fee agreements, some of which benefit from minimum volume commitments - Top three producers contributing over 85% of 2019 throughput through July have, on average, over 10 years of dedication remaining
- Diamondback operates approximately 38% of the dedicated acreage and produced approximately 35% of the volumes on the system in 2019 through July
$355 million purchase price; ownership split 60/40 between Rattler and Oryx- Oryx to operate the system following closing
“This strategic acquisition demonstrates Rattler’s ability to leverage its relationship with Diamondback to invest in attractive projects underpinned by Diamondback’s operations, providing unique visibility into the growth in volumes expected on this system. 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. Moreover, the acreage dedicated to Reliance Gathering encompasses some of Diamondback’s highest rate of return projects and deepest levels of inventory at current activity levels, which we expect will support continued production growth for years to come,” stated Travis Stice, Chief Executive Officer of Rattler’s general partner.
Mr. Stice continued, “We are excited to partner with Oryx in the
“We are excited about this acquisition as it marks our entry into the
Jefferies LLC is acting as exclusive financial advisor, and Sidley Austin LLP is acting as legal counsel to Reliance Gathering in connection with the transaction. Akin Gump Strauss Hauer & Feld LLP is acting as legal counsel to Rattler. Shearman & Sterling LLP is acting as legal counsel to Oryx.
About Rattler Midstream LP
Rattler Midstream LP is a growth-oriented Delaware limited partnership formed in
About
Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the
About Oryx Midstream
Midland-based Oryx Midstream is the largest privately-held midstream crude operator in the
About Stonepeak Infrastructure Partners
Stonepeak Infrastructure Partners is an infrastructure-focused private equity firm with over
Forward-Looking Statements
This press release may include forward-looking statements within the meaning of the federal securities laws. Statements that do not relate strictly to historical or current facts are forward- looking, can be identified by words such as "anticipate," "if," "will" and "expect," and include, but are not limited to, statements regarding the anticipated closing of the transaction and its expected benefits. Forward-looking statements involve risks and uncertainties including, among others, that Rattler's business plans may change as circumstances warrant. When considering these forward- looking statements, you should keep in mind the risk factors and other cautionary statements in Rattler's prospectus and SEC filings and Diamondback’s SEC filings, including its Forms 10-K, 10-Q and 8-K. Rattler, Diamondback, Oryx and Stonepeak undertake no obligation and do not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Rattler Midstream Investor Contact:
Adam Lawlis
+1 (432) 221-7467
ir@rattlermidstream.com
Oryx Midstream Media Contact:
Meredith Hargrove Howard
Redbird Communications Group
+1 (210) 737-4478
meredith@redbirdpr.com
Source: Rattler Midstream LP