Western Midstream’s (WES) Q1 earnings call held on May 7, centered on the Delaware Basin, where management said gas throughput rose 3% to just over 2 Bcf/d, crude oil and NGL throughput hit a record 272 Mb/d, and produced water throughput reached 2.8 MMb/d. A highlight of the call was WES’s $1.6 billion acquisition of Brazos Delaware II (Brazos Midstream's Delaware assets), which CEO Oscar Brown called a “strategic bolt-on” that expands WES’s West Texas footprint with about 910 miles of gathering pipeline, and 460 MMcf/d of processing capacity via the three-train Comanche processing plant. (WES's assets in blue and Brazos Midstream's Delaware assets in yellow in the figure below). The acquisition brings roughly 125 MMcf/d of unused processing capacity at the Comanche complex, which Brown said WES can use “in reasonably short order”.
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WES Makes a Splash in Q3 Earnings
In their Q3 Earnings call, Western Midstream (WES) flooded the market with insight on synergies, commercial success and challenges with their new water-related assets.
Where the Sour Turns to Sweet – Targa Continues Its Sour-Gas Expansion With Stakeholder Deal
Targa Resources’ plan to acquire sour-gas specialist Stakeholder Midstream will give the midstream giant an even stronger foothold in the Northern Delaware Basin, where much of the associated gas has high levels of H2S and CO2.
New Mexico – More on Sour-Gas-Related Assets in the Permian’s Northern Delaware Basin
While several larger midstream companies were focused on building conventional gas gathering and processing infrastructure in the Southern Delaware Basin, a handful of mostly smaller midstreamers were focusing on the Permian’s next challenge: developing systems in the Northern Delaware to gather and treat associated gas with high H2S and CO2 content. In today’s RBN blog, we continue our look at the region’s sour-gas-related assets with a review of what a few of these companies have assembled.
