Kinetik sees this acquisition as competitive and complementary to its high-quality backlog, meeting strict investment criteria. Credit: Viktor Birkus/Shutterstock.

Kinetik Holdings has signed a definitive agreement to acquire natural gas and crude oil gathering systems in Reeves County, Texas, US, from Permian Resources.

The $180m cash transaction will expand Kinetik’s operations in the Texas Delaware Basin, particularly in Reeves County, by providing a multi-stream opportunity encompassing natural gas gathering, compression and processing, as well as crude gathering services.

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This strategic acquisition will see Permian Resources dedicating around 60,000 gross operated acres to Kinetik under long-term, fixed-fee agreements.

The assets involved include more than 250mcf/d of primarily owned electric compression and a private electric distribution system.

Additionally, the transaction includes more than 150mcf/d of gas gathered volumes and 25,000 barrels per day of crude gathered volumes anticipated by 2025.

Kinetik views this acquisition as not only highly competitive but also complementary to its high-quality, organic backlog, aligning with the company’s stringent investment criteria.

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The control of residue gas and natural gas liquids from the dedicated rich gas offers further upside potential, which will be optimised and integrated with Kinetik’s existing assets to strengthen the company’s overall value proposition.

Kinetik president and chief executive officer Jamie Welch said: “This investment opportunity reinforces our strategic partnership with Permian Resources, which is one of the most active and lowest-cost operators in the Delaware Basin,

“We are excited to further expand our Delaware gas and crude systems with this natural fit, bolt-on acquisition. The assets are located adjacent to our existing Delaware South system and will be integrated shortly following closing.

“The dedicated acreage includes highly economic inventory and shallow PDP [proved developed producing] declines, and with Permian Resources’ long-term development support, we expect attractive volume growth and long-term value creation for our stakeholders.”