About LPC Crude Oil Marketing LLC
LPC, an EnLink Midstream company, is a leader in the gathering, marketing, and transporting of oil and condensate in the Permian Basin. Headquartered in Midland, Texas, LPC has an experienced team that is committed to strong customer service. LPC, like its parent company EnLink, has a strong focus on growing in the Permian Basin. EnLink is strategically positioned in the Midland and Delaware basins, as well across North America’s top oil-and-gas-producing regions. EnLink has the scale and diversity of services to deliver results and is a one-stop shop for producer’s crude oil, condensate, NGL, and natural gas needs in the Permian.
LPC was acquired by EnLink Midstream in January 2015, expanding EnLink’s service offerings in the Permian. EnLink Midstream formed in 2014 when Devon Energy agreed to combine substantially all of its midstream assets with Crosstex Energy to form an integrated midstream company with enhanced size and scale in core operating regions, including the Permian. Devon and EnLink's strategic partnership continues today. For more information on EnLink Midstream, please visit EnLink.com
Strategic Transaction Will Expand EnLink’s Capabilities in Prolific Oil Producing Region of West Texas and New Mexico
DALLAS--(BUSINESS WIRE)-- The EnLink Midstream companies, EnLink Midstream Partners, LP (NYSE:ENLK) (the Partnership) and EnLink Midstream, LLC (NYSE:ENLC) (the General Partner) (together “EnLink”), today announced that a subsidiary of the Partnership has signed a definitive agreement to acquire LPC Crude Oil Marketing LLC (“LPC”), which has crude oil gathering, transportation and marketing operations in the Permian Basin, for approximately $100 million, subject to certain adjustments.
LPC currently purchases, transports and sells approximately 60,000 barrels per day of crude oil, serving as a critical link between Permian producers and end markets. The acquisition expands EnLink’s service offerings in the Permian Basin, adding crude oil first purchasing and logistics capabilities to EnLink’s existing natural gas gathering and processing services.
“The acquisition of LPC is a great example of our M&A strategy, which is one of our four avenues of growth,” said Barry E. Davis , EnLink Midstream President and Chief Executive Officer. “Even with the recent decline in oil prices, we believe that the Permian Basin will remain a core growth area for oil production. This acquisition enhances EnLink’s ability to provide a complete midstream solution to customers in one of the most active producing basins in North America, and our plan is to make additional investments expanding LPC’s business over time.
“This business comes with an experienced management team that has built a highly respected crude oil marketing company known for customer service and performance,” Davis added. “We are excited to welcome LPC’s dedicated team of employees into the EnLink family.”
LPC’s assets include:
The transaction value represents a multiple of approximately eight times current run-rate adjusted EBITDA. EnLink expects the acquisition to generate follow-on investment opportunities that will lower the acquisition multiple over time. The acquisition, which is subject to the satisfaction of customary closing conditions, including the receipt of applicable regulatory approvals, is expected to close in the first quarter of 2015. Following the closing of the transaction, LPC will operate as an indirect subsidiary of the Partnership. The highly-skilled management team and employees of LPC will remain with EnLink and will provide expertise in crude oil first purchasing and logistics.
Chi Operating, Inc. has used LPC Crude Oil for several years on numerous leases in Eastern New Mexico and West Texas. In addition to getting our oil to market, LPC also maintains division of interests, and disperses to our interest owners. Their team of professionals is an asset to our company’s operations.
LPC Crude Oil has been transporting and marketing crude oil for J. M. Cox Resources since 2004, and our company has benefited from their excellent service in the field, as well as their professional marketing of our product. LPC’s commitment to our industry is evident in the level of support they provide for oil and gas operators.
As a client of LPC Crude Oil, our company has been extremely satisfied with the level of service provided
at the lease, and in the area of marketing crude oil. The experienced and knowledgeable staff is well
prepared to serve the energy needs of the Permian Basin.
P.O. Box 3821
Midland, TX 79702
An EnLink Midstream Company
To contact EnLink Midstream,
please visit Enlink.com