November 1, 2023
Phase I of the Kings Landing Gas Processing Complex in Eddy County, New Mexico, a Large‐ Scale Capacity Expansion Project Serving Leading Producers in the Permian Basin of Southeast New Mexico to be in‐Service During the Fourth Quarter of 2024
THE WOODLANDS, TX – Durango Midstream LLC (“Durango” or the “Company”), a portfolio company majority owned by funds managed by Morgan Stanley Energy Partners, has secured underwritten commitments from a syndicate of commercial banks led by Wells Fargo Bank, National Association in support of the Company’s ongoing construction of its Kings Landing Gas Gathering and Processing Development (“Kings Landing” or the “Project”), a large‐scale expansion of Durango’s existing natural gas gathering and processing supersystem in the Permian Basin of southeast New Mexico. Phase I of the Project, which is expected to be placed in‐service during the fourth quarter of 2024, includes 200 million cubic feet per day (“MMcf/d”) of nameplate natural gas processing capacity, maximum 225 MMcf/d of processing capacity, combined with substantial investments in compression, gas gathering, and liquids‐handling infrastructure.
The Kings Landing project is underpinned by commercial agreements with leading Permian Basin producers and provides critical infrastructure for the safe and reliable delivery of products to market. Strategically located in Eddy County, the Kings Landing Gas Processing Complex will provide Durango with significant market connectivity access to multiple markets for natural gas and natural gas liquids production, enhancing flow assurance for its producers. Phase I of Kings Landing is scoped for timely and capital‐efficient expansion, and the Company’s long‐term development plan for the Project provides for Phase II of Kings Landing with the addition of a second plant adding another 200 MMcf/d of incremental nameplate processing capacity for a total of up to 450 MMcf/d of processing capacity at the Kings Landing Gas Processing Complex in support of producers in Durango’s operating region.
In connection with the Project, a subsidiary of Durango has secured underwritten commitments to upsize the Company’s senior debt availability and refinance Durango’s existing credit facility. The new credit facility will provide the company with substantial liquidity to continue executing on its organic growth opportunities in the Permian Basin of southeast New Mexico.
“Durango is excited to announce the continued expansion of our Permian Basin assets with the construction of Kings Landing,” said Durango President and CEO Richard Cargile. “The Kings Landing project provides an essential capacity solution for our customers in Eddy and Lea Counties, New Mexico, the two most active counties in the U.S. for oil and natural gas development. We are proud to be delivering on our long‐standing commitment to provide best‐in‐class midstream services as we continue to grow in support of our producers.”
Headquartered in The Woodlands, Texas, Durango is a premier midstream gas gathering, processing, and CO2 sequestration business with assets strategically located in the Permian Basin and Midcontinent regions of the United States. The Company is led by Richard Cargile and is majority‐ owned by funds managed by Morgan Stanley Energy Partners. For further information about Durango, please visit www.durangomidstream.com
Morgan Stanley Energy Partners, the energy‐focused private equity business of Morgan Stanley Investment Management, is a leading energy private equity platform that makes privately negotiated equity and equity‐related investments in energy companies located primarily in North America.
Morgan Stanley Energy Partners pursues a differentiated investment strategy, focused on the buyout and build‐up of strategically attractive, established energy businesses across the energy value chain in partnership with world‐class management teams. For further information about Morgan Stanley Energy Partners, please visit www.morganstanley.com/im/en‐us/capital‐seeker/teams/private‐ equity/energy‐partners‐team.html
# # #