DALLAS, June 27, 2018 /PRNewswire/ -- The EnLink
Midstream companies (EnLink), EnLink Midstream Partners, LP (NYSE:
ENLK) (the Partnership or ENLK) and EnLink Midstream, LLC (NYSE:
ENLC) (the General Partner or ENLC), today announced that the
Partnership will construct a new crude oil gathering system in the
Northern Delaware Basin called the
Avenger Crude Oil Gathering System (Avenger). Avenger is expected
to significantly expand EnLink's crude oil gathering operations in
the area.
Avenger exemplifies EnLink's proven approach of utilizing
existing platforms to grow and expand service offerings with
projects anchored by strong, active producers. EnLink successfully
implemented this multi-commodity strategy in top U.S. basins like
Central Oklahoma and the Midland
Basin.
The project is anchored by a 10-year contract with Devon Energy
Corp. and is supported by dedications from Devon's Todd (Eddy and Lea
Counties, New Mexico) and Potato
Basin (Eddy County, New Mexico)
development areas. Devon
previously announced plans to direct a significant portion of its
capital budget into Delaware Basin
development.
"EnLink has an established natural gas footprint in the
Delaware Basin, and Avenger
expands our service offerings by leveraging our crude gathering
expertise to better serve our customers," said Michael J. Garberding, EnLink President and
Chief Executive Officer. "Our strong, long-term commercial
relationship with Devon remains
firmly in place, and today's announcement demonstrates our joint
commitment to ongoing success together in several regions, from
North Texas to Central Oklahoma and now in the Delaware Basin. Avenger is another
high-quality project that evidences the success of EnLink's 'Right
Places, Right Partners, Right Plan' business model."
The Partnership plans to invest approximately $35 million to $40
million of capital expenditures in the development of
Avenger in 2018. These additional capital expenditures are
incremental to the previously issued 2018 capital expenditures
outlook for the Partnership's crude and condensate segment. Further
capital expenditures are expected in future years as Devon continues to develop its acreage in the
region. Initial operations are expected to commence during the
third quarter of 2018, and full-service operations are expected to
commence during the first quarter of 2019.
"Avenger is the third crude oil gathering platform in a
high-growth basin that EnLink has announced over the last two
years," Garberding said. "We expect these platforms to generate an
attractive return, in the five to six times range, and provide
long-term, stable cash flows."
EnLink is not constructing or operating Avenger through its
Delaware Basin joint venture with
NGP Natural Resources XI, L.P.
A presentation related to this announcement is available on the
Investors page of EnLink.com.
About the EnLink Midstream Companies
EnLink provides
integrated midstream services across natural gas, crude oil,
condensate, and NGL commodities. EnLink operates in several top
U.S. basins and is strategically focused on the core growth areas
of the Permian's Midland and Delaware basins, Oklahoma's Midcontinent, and Louisiana's Gulf Coast. Headquartered in
Dallas, EnLink is publicly traded
through EnLink Midstream, LLC (NYSE: ENLC), the General Partner,
and EnLink Midstream Partners, LP (NYSE: ENLK), the Master Limited
Partnership. Visit www.EnLink.com for more information on how
EnLink connects energy to life.
Forward-Looking Statements
This press release
contains forward-looking statements within the meaning of the
federal securities laws. These statements are based on certain
assumptions made by the Partnership and the General Partner based
upon management's experience and perception of historical trends,
current conditions, expected future developments and other factors
the Partnership and the General Partner believe are appropriate in
the circumstances. These statements include, but are not limited
to, statements with respect to the closing of the transaction
between Devon and Global
Infrastructure Partners, the addition of Global Infrastructure
Partners as a part of the Partnership, the benefits of such
transaction to the Partnership and the General Partner, the
Partnership's future relationship with Devon, the project's expected financial
results, the project's characteristics, the project's connections,
the project's customers as well as forecasts regarding capacity,
investment and timing for becoming operational for the project
discussed above, as well as the Partnership's future growth and
results of operations. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of the Partnership and the General Partner, which may cause
the Partnership's and the General Partner's actual results to
differ materially from those implied or expressed by the
forward-looking statements. These risks include, but are not
limited to, risks discussed in the Partnership's and the General
Partner's filings with the Securities and Exchange Commission. The
Partnership and the General Partner have no obligation to publicly
update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.
Investor Relations: Kate
Walsh, Vice President of Investor Relations, 214-721-9696,
kate.walsh@enlink.com
Media Relations: Jill
McMillan, Vice President of Public & Industry Affairs,
214-721-9271, jill.mcmillan@enlink.com
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SOURCE EnLink Midstream