Durango Midstream LLC acquires Lucid Artesia Holdings, Inc. from Lucid Energy Group II Holdings, LLC

November 17, 2021

Durango Midstream LLC acquires Lucid Artesia Holdings, Inc. from Lucid Energy Group II Holdings, LLC

The Woodlands, TX., Nov 17, 2021 -- Durango Midstream LLC (“Durango”) today announced the acquisition of 100% of the stock of Lucid Artesia Holdings, Inc. a Delaware corporation which owns through its wholly owned subsidiary Lucid Artesia Company, a New Mexico corporation, a midstream gas gathering and processing company with operations in Southeast New Mexico.

“Durango is very excited about the potential of this strategic acquisition. This acquisition enhances the gathering and processing capabilities of Durango’s subsidiary, Frontier Field Services (“FFS”), by adding almost 1,000 miles of gathering pipeline, field compression and the 40 MMcfd Dagger Draw treating and processing plant,” said Richard Cargile, CEO of Durango. “This bolt-on acquisition is complementary to FFS’s existing Maljamar system, extends our current natural gas gathering and processing footprint, and captures operating synergies and efficiencies that will benefit our customers.”

Durango is executing on plans to expand the Dagger Draw treating and processing facility from 40 MMcfd to 115 MMcfd to accommodate future growth. When completed, FFS’s total sour gas processing capability in the area will be expanded from FFS’s existing capacity of 145 MMcfd to 260 MMcfd. The addition of the Dagger Draw acid gas injection well is expected to increase Durango’s carbon capture capacity to more than 100,000 metric tons per year.

“The expanded system and connectivity will enhance FFS’s operating reliability and flexibility, as well as system efficiencies for our customers, by providing a higher level of service of redundancy and fuel savings”, said Cargile. “The additional operating flexibility will help mitigate production curtailments, gas flaring and waste during downstream planned maintenance and any power disruptions”.

This acquisition increases FFS’s system volume throughput by over ~45% and positions FFS for additional growth in the Indian Basin, Dagger Draw, NW Shelf and North Delaware Basin areas.

About Durango Midstream LLC

Headquartered in The Woodlands, Texas, Durango Midstream is a leading natural gas gathering, processing, and marketing company providing midstream services to oil and gas producers in New Mexico and Kansas. Durango Midstream is sponsored by Morgan Stanley Energy Partners. For further information about Durango Midstream, please contact info@durangomidstream.com or visit the website at www.durangomidstream.com.

About Morgan Stanley Energy Partners

Morgan Stanley Energy Partners is the energy-focused private equity business of Morgan Stanley Investment Management. 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.


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