Producers Midstream II, a Tailwater Capital portfolio company, has secured a $400m expanded credit facility.
This initiative, led by Texas Capital Bank, Bank of Oklahoma, Cadence Bank, US Bank and Wells Fargo Bank, aims to bolster the company's strategic growth in the US midstream sector.
The credit facility will enable Producers Midstream to fund development projects across its existing asset base in the Mid-Continent/Eastern Permian Basin and growth projects in the Delaware Basin.
This includes the completion of a state-of-the-art gathering, treating and processing system in Lea County, New Mexico. The company is also evaluating the relocation of additional cryogenic plants to Lea County.
Tailwater Capital partner Stephen Lipscomb said: “We are incredibly grateful for the bank group that has supported Producers Midstream II. This financing reflects their confidence in the management team and equips the company to continue providing solutions to our customers.”
Producers Midstream's expanded credit facility enhances its ability to execute its growth strategy and maintain its status as a trusted midstream partner.
Producers Midstream CEO Matt Flory said: “With this facility, Producers Midstream is well-positioned to advance critical infrastructure projects and expand our operational presence in key regions, targeting increased drilling activity in the Bone Springs, Wolfcamp and Penn Shale formations in the Delaware Basin, the Eastern Permian Basin and the growing Cherokee / Red Fork formation in the Anadarko Basin.
“This milestone underscores our commitment to delivering innovative and reliable midstream solutions to meet the evolving needs of upstream operators.”
This financial backing allows the company to support operator activity in the surrounding areas and drive future expansion.
In a related development, LandBridge recently revealed a purchase and sale agreement to acquire roughly 46,000 surface acres in the Southern Delaware Basin, named Wolf Bone Ranch, from a subsidiary of VTX Energy Partners, a Vitol investment.
The acquisition, priced at $245m in cash, is contingent on customary purchase price adjustments and closing conditions.
