US-based firm Lucid Energy Group, along with its financial sponsor, EnCap Flatrock Midstream, has signed an agreement to sell Lucid Energy Group II (Lucid II) to a joint venture (JV) owned by Riverstone Holdings and the merchant banking division of The Goldman Sachs Group (Goldman Sachs MBD) for around $1.6bn.
The company will be sold to the JV comprising Riverstone Global Energy and Power Fund VI, and investment funds managed by Goldman Sachs MBD, including West Street Capital Partners VII, West Street Global Infrastructure Partners III, and West Street Energy Partners.
The proposed sale comprises assets, which are known as the South Carlsbad natural gas gathering and processing system and the Artesia natural gas gathering and processing system, in the core of the northern Delaware Basin.
The midstream assets comprise around 1,700 miles of natural gas gathering pipelines, with an ability to process 585 million cubic feet per day (mmcfd).
Lucid Energy Group president and CEO Mike Latchem said: “The South Carlsbad system has tremendous growth potential, and we are confident that Riverstone and Goldman Sachs MBD bring the right combination of financial strength and strategic experience we need to continue our pace of growth in Lucid II.”
The company is currently engaged in expanding processing capacity by an additional 200mmcfd, scheduled to be in service later this year.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe transaction is conditional upon customary approvals and is expected to be completed in the first quarter of this year.
Even after the deal is closed, Lucid II will retain its name and operate as a Riverstone and Goldman Sachs MBD portfolio company.