Canyon Midstream Partners Announces Gas Processing Agreements with XTO Energy and Apache Corporation and Expansion of Permian Basin Midstream System
Houston, TX – June 5, 2014 – Canyon Midstream Partners, LLC (“Canyon”) today announced it has entered into gathering and processing agreements with XTO Energy Inc. (“XTO”), a subsidiary of Exxon Mobil Corporation, and Apache Corporation (“Apache”) for midstream services on Canyon’s James Lake System.
In addition, Canyon announced it has expanded its cryogenic gas processing plant in Ector County, Texas (the “James Lake Plant”) from 70 million cubic feet per day (MMcf/d) to 100 MMcf/d by adding a 30 MMcf/d cryogenic turbo expansion train. The James Lake Plant is part of Canyon’s James Lake System, which currently consists of 60 miles of 12” trunkline and six field compressor stations providing low pressure gathering services to Ector, Andrews, Martin, Dawson and Gaines counties, Texas. When completed in late 2014, the James Lake System will deliver residue gas into the El Paso Natural Gas pipeline and deliver NGLs to the Sand Hills pipeline and the Chaparral pipeline in Ector County. Canyon is also developing Phase II of the James Lake System, which will consist of a second 100 MMcf/d cryogenic gas processing plant in Martin County and 60 additional miles of 12” trunkline, which will expand the system’s service territory into Howard and Borden counties, Texas. Canyon expects Phase II to commence operations in the first half of 2015.
“We appreciate the interest that the producer community is demonstrating in our James Lake project, and Canyon is pleased to have the opportunity to provide midstream services to world-class companies such as XTO and Apache,” said Michael Walsh, President and CEO of Canyon.
“Canyon’s vision is to create a distributed and integrated midstream system in an area of the Permian Basin where the current and potential production volumes exceed the capacity of the existing infrastructure,” Walsh added. “We measure our company’s success by providing XTO, Apache and each of our customers with safe, reliable, operationally efficient and commercially responsive midstream services.”
Canyon was formed by former senior management of Delphi Midstream Partners, LLC and Laser Northeast Gathering Company, LLC. The Canyon team is led by Michael Walsh; Mark Fuqua, SVP Business Development; and Dale Harper, SVP Engineering & Operations. Inquiries regarding the James Lake System or Canyon’s midstream services should be directed to info@canyonmidstream.com.
About Canyon Midstream Partners, LLC
Canyon is a Houston-based company formed to acquire, develop and operate midstream energy companies and assets. Canyon is backed by $300 million in equity commitments from Kayne Anderson Energy Funds, Canyon management and certain institutional investors. Canyon seeks opportunities to create long-term value for its customers, investors and employees through operational improvements, organic and strategic growth and efficient capital investment. Canyon currently operates gathering and processing assets in the Permian Basin, East Texas and the Tuscaloosa Marine Shale. For more information, visit www.canyonmidstream.com or contact Canyon at info@canyonmidstream.com.
About Kayne Anderson Energy Funds
Established in 1998, Kayne Anderson Energy Funds, with offices in Houston and Los Angeles, provides private equity financing primarily for high-growth oil and gas companies across North America. The firm has raised six dedicated energy private equity funds totaling over $4.3 billion in committed capital and invested in more than 80 portfolio companies. Kayne Anderson Energy Funds is a part of Kayne Anderson Capital Advisors, L.P., a leading independent alternative investment management firm founded in 1984 with over $25 billion in assets for institutional investors, family offices, and high net worth and retail clients in eight offices across the United States. Kayne Anderson Capital Advisors focuses on niche investing in upstream oil and gas companies, energy infrastructure, specialized real estate, middle market credit, growth private equity and distressed municipal opportunities. For more information, please visit www.kaynecapital.com.