Producers Midstream Expands Infrastructure for Gas Processing

Producers Midstream Announces Construction of New Facilities

Producers Midstream II, LLC, a dynamic company supported by Tailwater Capital, is excited to announce its ambitious plans for a new gathering, treating, and processing system in a prominent oil and gas producing region. This system will be situated in the heart of the Delaware Basin, an area renowned for its high activity in oil and gas extraction.

Phase One: Strategic Plant Relocation

The initial stage of the project involves relocating a significant existing 60 million standard cubic feet per day (MMscfd) cryogenic processing plant. Alongside this, Producers Midstream will construct an acid gas injection well and integrate over 40,000 horsepower of compression equipment—all of which are already in their inventory. With these developments, the company anticipates ramping up the plant's capacity to 90 MMscfd to accommodate growing customer demand.

Infrastructure Enhancements

In addition to the current relocation of assets, the organization also possesses another 150 MMscfd cryogenic processing plant in its inventory located within the Texas Panhandle. This resource can be transferred to further bolster the gathering, treating, and processing capabilities in the Delaware Basin.

Strategic Partnerships and Growth Plans

Producers Midstream is establishing critical partnerships, having already entered into agreements with several stakeholders in the region. These commitments for acreage and volume will provide a solid foundation for the upcoming development phase. The organization is in ongoing negotiations with other operators, demonstrating a keen ability to expand its services to match the rapid drilling activities in the area.

Leadership Insights on Expansion

Matt Flory, President and CEO of Producers Midstream, highlighted the importance of this infrastructure initiative, expressing, "The construction of this system is a key part of our long-term strategy to provide scalable and efficient midstream solutions. By strategically positioning assets and expanding capacity, we're equipping operators with the infrastructure they need to support ongoing and future developments in this rapidly growing area." This reflects their commitment to being a reliable partner in the industry.

Tailwater Capital’s Role

Echoing this sentiment, Stephen Lipscomb, Partner at Tailwater Capital, noted, "This phased development approach allows us to repurpose existing, idle assets to meet immediate infrastructure needs within the Delaware Basin. The Producers Midstream team is uniquely positioned to provide fast and effective solutions for their clients while scaling their operations to meet future demands." This strategic foresight is crucial in a fast-evolving industry.

About Producers Midstream

Founded in 2016, Producers Midstream is dedicated to enhancing the value of its partners' operations through tailored midstream systems. These systems promise greater reliability and consistency, backed by a commitment to service, innovation, and responsiveness.

About Tailwater Capital

Based in Dallas, Tailwater Capital is a respected private equity firm focusing on energy and growth infrastructure. With a proven track record, they have successfully raised over $4.7 billion in committed capital and completed more than 180 transactions, representing an impressive cumulative value exceeding $26 billion. The firm prides itself on its cooperative approach to working with seasoned management teams to create value-added solutions.

Frequently Asked Questions

What is the main goal of the new gas processing facilities?

The primary aim is to enhance gas gathering, treating, and processing capabilities to support ongoing and future developments in a rapidly expanding oil and gas region.

How will the project impact the Delaware Basin region?

This project will significantly improve infrastructure, allowing for increased capacity and efficiency in gas processing, which is crucial for supporting ongoing drilling activities.

What capacities are being targeted in the new system?

The facility is initially set to handle 60 MMscfd, with plans to expand up to 90 MMscfd based on customer demand.

Who are the key leaders involved in this project?

Key figures include Matt Flory, President and CEO of Producers Midstream, and Stephen Lipscomb, Partner at Tailwater Capital, who both emphasize the strategic significance of this development.

When is the project expected to be completed?

The initial phase is anticipated to be operational by the second quarter of 2025, as part of the ongoing development strategy.

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