Ares, ARM Energy partner to build Salt Creek Midstream
Asset manager Ares Management and oil and gas producer services firm ARM Energy Holdings Salt Creek Midstream announced this morning they are partnering to develop Salt Creek Midstream in the Delaware Basin.
The partnership is owned by funds managed by the Ares Private Equity Group and ARM Energy. ARM Midstream Management will serve as project operator, Kallanish Energy reports.
Once fully operational, Salt Creek will primarily be comprised of multiple cryogenic processing facilities, as well as gas and crude gathering pipelines, compression and treating facilities.
By the end of 2018, Salt Creek is expected to have 260 million cubic feet per day (MMcf/d) of processing capacity, with additional expansion investments planned as producers are added to the system.
To date, Salt Creek has secured commitments for more than 250,000 dedicated acres from multiple Delaware Basin producers.
“We are thrilled to partner with Ares on this important initiative, and are confident it will create long-term value for ARM Energy, Ares and our other partners,” said Zach Lee, ARM Energy’s CEO.
“Ares is excited to collaborate with the ARM Energy team on Salt Creek Midstream, which is located in one of the most prolific energy plays in North America,” said Nate Walton, partner and co-head of North American Private Equity for Ares.
Salt Creek Midstream also announced this morning the successful close of its $350 million term loan facility. Deutsche Bank acted as sole arranger and underwriter of the credit facility, with proceeds to be used to fund further development and expansion of the project in the Delaware Basin.