Howard Energy Partners Forms JV with WPX Energy in the Permian Basin
Howard Energy Partners (“HEP”) has signed a strategic partnership with WPX Energy (NYSE:WPX) to form a 50/50 joint venture, Catalyst Midstream Partners (“Catalyst”), to own, operate and expand oil and gas gathering and gas processing assets in the Delaware Basin within the greater Permian Basin, one of the most prolific fields in the United States.
HEP will complete construction of an approximately 50-mile crude oil gathering system, build a cryogenic natural gas processing complex with an initial capacity of 400 million cubic feet per day, and build associated natural gas and product pipelines. HEP will serve as operator of the Catalyst assets.
Investing in the JV with HEP are GIC Private Limited (an arm of Singapore’s sovereign wealth fund), Alberta Investment Management Company (“AIMCo”) and investment funds managed by Alinda Capital Partners.
“Historically, producer-backed midstream companies have performed well given the strong alignment of interests. We are excited about the strategic partnership with WPX, one of the strongest players in the Permian Basin, and the positive implications it has for our business,” said Mike Howard, HEP’s chairman and chief executive officer.
“We believe the Howard team has the right skills, capabilities and focus to make this joint venture a success and we’re excited to work with them,” said Rick Muncrief, WPX’s chairman, president and chief executive officer.