EnLink Midstream Strengthens Portfolio in Permian Basin and STACK Plays

March 2017

Dallas-based EnLink Midstream has grown substantially since its inception in 2014, created by Devon Energy and Crosstex Energy. The midstream powerhouse owns and operates assets in key oil and gas hubs in North America, including central Oklahoma, the Permian Basin and the Gulf Coast.

Throughout the tough 2016 midstream market, EnLink has managed to thrive and become a hard-hitter in the industry. The company is rapidly building up its assets in major plays and paving the way for a strong year ahead. Two of the current expansion projects are the Greater Chickadee crude oil gathering system and the Chisholm III Plant expansion.

In the Permian Basin, EnLink has over 525 miles of gas gathering pipelines with approximately 460 MMcf/d of processing capacity and 10,000 bpd of off-spec crude stabilization and treatment capacity. The company also attained 15 pipeline and refinery injection stations, nearly 100 miles of crude oil gathering pipelines with over 15,000 bpd of capacity and a fleet of 50 tractor trailers from the acquisition of LPC Crude Oil Marketing LLC in 2015. EnLink has anchor positions in both the Midland and Delaware basins of the Permian, where the company has invested almost $1.5 billion since 2015.

EnLink is further expanding its crude oil services offerings in the Permian Basin with the Greater Chickadee crude oil gathering project, which will include the construction of over 150 miles of high-pressure and low-pressure pipelines. When complete, Greater Chickadee will have up to 100,000 bpd day of capacity and will transport crude oil volumes to several major market outlets and key hubs in the Midland area.

In addition to gathering lines, the project consists of the construction of several central tank batteries, pump, truck injection and storage stations to optimize shipping and delivery operations.

Barry E. Davis, chief executive officer of EnLink Midstream said, “The Greater Chickadee project is a perfect example of EnLink’s commitment to execute in our core growth areas and will be a valuable complement to our crude oil business.”

He continued, “We are doing exactly what we said we would do when we made the acquisition of LPC Crude Oil Marketing – using the LPC platform to expand and grow our crude service offerings in the Permian. Greater Chickadee is the next step in creating a regional gathering system to capture additional value through an expanded platform and improved asset integration.”

Construction of Greater Chickadee continues to progress well and is expected to be fully operational during the first quarter of 2017.

While EnLink has been broadening its crude portfolio in the Permian Basin, the company has also driven further development in Central Oklahoma’s STACK play where the company is one of the largest gas processing providers. Once phase I, II, and III expansions of EnLink’s Chisholm gas processing complex is completed by the end of 2017, EnLink will operate approximately 1 Bcf/d of processing capacity in Central Oklahoma. EnLink projects that 2017 volumes will increase by 180 percent year-over-year on an exit-rate-to-exit-rate basis.

Davis commented, “The Chisholm III expansion project solidifies EnLink’s presence as one of the top midstream providers in the STACK, an area that continues to outperform, and underscores our strategy of positioning ourselves in the top regions with extraordinary growth potential.”