DALLAS, June 8, 2016 /PRNewswire/ -- A subsidiary of EnLink Midstream Partners, LP (NYSE: ENLK) (the "Partnership"), and EnLink Midstream, LLC (NYSE: ENLC) (the "General Partner") will construct a new crude oil gathering system, called the Greater Chickadee crude oil gathering project ("Greater Chickadee"), in Upton and Midland counties in the Permian Basin. The Partnership will invest approximately $70 million to $80 million to build Greater Chickadee, which will include over 150 miles of high- and low-pressure pipelines that will transport crude oil volumes to several major market outlets and other key hub centers in the Midland, Texas, area. The project also includes the construction of multiple central tank batteries and pump, truck injection, and storage stations to maximize shipping and delivery options for EnLink's producer customers. The initial phase of Greater Chickadee will be operational in the second half of this year with full service expected early next year.
"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," said Barry E. Davis, President and Chief Executive Officer of EnLink Midstream. "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."
Greater Chickadee is supported by long-term, fee-based agreements with top Permian Basin producers. The project includes approximately 35,000 dedicated acres in Upton County. Current production from this dedicated acreage is over 10,000 barrels per day.
A presentation related to this announcement can be found on the Investors page of www.EnLink.com.
About the EnLink Midstream Companies
EnLink Midstream is a leading, integrated midstream company with a diverse geographic footprint and a strong financial foundation, delivering tailored customer solutions for sustainable growth. EnLink Midstream is publicly traded through two entities: EnLink Midstream, LLC (NYSE: ENLC), the publicly traded general partner entity, and EnLink Midstream Partners, LP (NYSE: ENLK), the master limited partnership.
EnLink Midstream's assets are located in many of North America's premier oil and gas regions, including the Barnett Shale, Permian Basin, Cana-Woodford Shale, Arkoma-Woodford Shale, STACK, SCOOP, C-NOW, Eagle Ford Shale, Haynesville Shale, Gulf Coast region, Utica Shale, and Marcellus Shale. Based in Dallas, Texas, EnLink Midstream's assets include approximately 9,900 miles of gathering and transportation pipelines, 19 processing plants with approximately 3.9 billion cubic feet per day of processing capacity, seven fractionators with approximately 284,000 barrels per day of fractionation capacity, as well as barge and rail terminals, product storage facilities, purchase and marketing capabilities, brine disposal wells, an extensive crude oil trucking fleet and equity investments in certain private midstream companies.
Additional information about the EnLink companies can be found at www.EnLink.com.
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 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.
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SOURCE EnLink Midstream