DALLAS, June 27, 2018 /PRNewswire/ -- The EnLink Midstream companies (EnLink), EnLink Midstream Partners, LP (NYSE: ENLK) (the Partnership or ENLK) and EnLink Midstream, LLC (NYSE: ENLC) (the General Partner or ENLC), today announced that the Partnership will construct a new crude oil gathering system in the Northern Delaware Basin called the Avenger Crude Oil Gathering System (Avenger). Avenger is expected to significantly expand EnLink's crude oil gathering operations in the area.
Avenger exemplifies EnLink's proven approach of utilizing existing platforms to grow and expand service offerings with projects anchored by strong, active producers. EnLink successfully implemented this multi-commodity strategy in top U.S. basins like Central Oklahoma and the Midland Basin.
The project is anchored by a 10-year contract with Devon Energy Corp. and is supported by dedications from Devon's Todd (Eddy and Lea Counties, New Mexico) and Potato Basin (Eddy County, New Mexico) development areas. Devon previously announced plans to direct a significant portion of its capital budget into Delaware Basin development.
"EnLink has an established natural gas footprint in the Delaware Basin, and Avenger expands our service offerings by leveraging our crude gathering expertise to better serve our customers," said Michael J. Garberding, EnLink President and Chief Executive Officer. "Our strong, long-term commercial relationship with Devon remains firmly in place, and today's announcement demonstrates our joint commitment to ongoing success together in several regions, from North Texas to Central Oklahoma and now in the Delaware Basin. Avenger is another high-quality project that evidences the success of EnLink's 'Right Places, Right Partners, Right Plan' business model."
The Partnership plans to invest approximately $35 million to $40 million of capital expenditures in the development of Avenger in 2018. These additional capital expenditures are incremental to the previously issued 2018 capital expenditures outlook for the Partnership's crude and condensate segment. Further capital expenditures are expected in future years as Devon continues to develop its acreage in the region. Initial operations are expected to commence during the third quarter of 2018, and full-service operations are expected to commence during the first quarter of 2019.
"Avenger is the third crude oil gathering platform in a high-growth basin that EnLink has announced over the last two years," Garberding said. "We expect these platforms to generate an attractive return, in the five to six times range, and provide long-term, stable cash flows."
EnLink is not constructing or operating Avenger through its Delaware Basin joint venture with NGP Natural Resources XI, L.P.
A presentation related to this announcement is available on the Investors page of EnLink.com.
About the EnLink Midstream Companies EnLink provides integrated midstream services across natural gas, crude oil, condensate, and NGL commodities. EnLink operates in several top U.S. basins and is strategically focused on the core growth areas of the Permian's Midland and Delaware basins, Oklahoma's Midcontinent, and Louisiana's Gulf Coast. Headquartered in Dallas, EnLink is publicly traded through EnLink Midstream, LLC (NYSE: ENLC), the General Partner, and EnLink Midstream Partners, LP (NYSE: ENLK), the Master Limited Partnership. Visit www.EnLink.com for more information on how EnLink connects energy to life.
Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws. These statements are based on certain assumptions made by the Partnership and the General Partner based upon management's experience and perception of historical trends, current conditions, expected future developments and other factors the Partnership and the General Partner believe are appropriate in the circumstances. These statements include, but are not limited to, statements with respect to the closing of the transaction between Devon and Global Infrastructure Partners, the addition of Global Infrastructure Partners as a part of the Partnership, the benefits of such transaction to the Partnership and the General Partner, the Partnership's future relationship with Devon, the project's expected financial results, the project's characteristics, the project's connections, the project's customers as well as forecasts regarding capacity, investment and timing for becoming operational for the project discussed above, as well as the Partnership's future growth and results of operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership and the General Partner, which may cause the Partnership's and the General Partner's actual results to differ materially from those implied or expressed by the forward-looking statements. These risks include, but are not limited to, risks discussed in the Partnership's and the General Partner's filings with the Securities and Exchange Commission. The Partnership and the General Partner have no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Investor Relations: Kate Walsh, Vice President of Investor Relations, 214-721-9696, [email protected]
Media Relations: Jill McMillan, Vice President of Public & Industry Affairs, 214-721-9271, [email protected]