Private equity firm Blackstone Group today struck a deal to buy USA operator of pipelines and processing facilities EagleClaw Midstream Ventures LLC, for about $2 billion.
The all-cash transaction is expected to close by the end of July 2017 and includes approximately $1.25 billion in stapled debt financing provided by Jefferies LLC. Blackstone's stock, which was inactive in premarket trade, has tacked on 6.8% year to date, while the S&P 500 has gained 4%. EagleClaw's financial sponsor is a partnership between EnCap Investments LP and Flatrock Energy Advisors LLC, called Encap Flatrock Midstream.
"Blackstone has a deep understanding of the compelling fundamentals of the upstream and midstream economics in the Permian, an outstanding reputation as an investor in the energy sector and the scale to take EagleClaw to the next level, " he added.
In the Delaware Basin region of the Permian, private equity firms have accounted for more than 46 percent of growth in new gas processing systems, according to Barclays.
Updates with company comment in fourth paragraph.