Blackstone will acquire EagleClaw Midstream Ventures

BlackStone Group L.P. (NYSE: BX) will acquire EagleClaw MidStream Ventures LLC for $2 billion.  Private firms have invested heavily in the recent years in the oil and gas industries as asset prices have fallen sharply since crude oil prices have collapsed in 2014.  Blackstone had previously suggested investing $1.5 billion in the Permian basin. 

EagleClaw MidStream Ventures is the largest private operator of pipelines and processing facilities in West Texas’ Delaware basin.  The Permian Basin is the largest U.S. oil patch and is an icon for the oil and gas industry as crude oil prices recover.  Over $28 billion was utilized in land acquisition last year within the region which was over triple of what was spent in 2015. 

According to Barclays, private equity firms have accounted for over 46 percent growth in new gas processing systems in the Delaware Basin region of the Permian.  EagleClaw has announced that the cash deal will include about $1.25 billion in debt that is financed by Jefferies LLC. 

The deal is anticipated to close by the end of July 2017.  Jefferies LLC acts as financial adviser to Eagle Claw, whereas Morgan Stanley and Intrepid Partners LLC advise Blackstone. 

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