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Whiptail Midstream Completes Sale of San Juan Basin Midstream Business for $237 Million

Strategic Insights

— 1 min read

Whiptail Midstream, a portfolio company of I Squared Capital, has successfully completed the sale of its San Juan Basin midstream business to a subsidiary of MPLX LP for cash consideration of $237 million. This significant milestone marks the culmination of the company's growth and development of its critical midstream infrastructure, which has played a crucial role in supporting the growth of its producer customers in the Gallup oil play. The sale will allow MPLX to continue investing and growing the system as activity in the region continues. The Whiptail team, led by President Bob O'Neal and CEO Josh Lamberton, has worked tirelessly to develop and grow the business while ensuring safe and reliable operations.

Key Takeaways:

  • Whiptail Midstream, a portfolio company of I Squared Capital, has sold its San Juan Basin midstream business to MPLX LP for $237 million.
  • The sale marks a major milestone for Whiptail Midstream, which has developed and grown its critical midstream infrastructure in the San Juan Basin.
  • Whiptail's extensive oil, gas, and water gathering systems played a critical role in supporting the growth of its producer customers in the Gallup oil play.
  • MPLX's ownership will allow for continued investment and growth of the system as activity continues in the region.
  • Evercore served as Whiptail Midstream's financial advisor, while Sidley Austin LLP acted as legal counsel.
  • Whiptail Midstream was founded in 2016 by management and I Squared Capital together with an investment in midstream assets in the San Juan Basin in Northwest New Mexico.
  • I Squared Capital is a leading global infrastructure investor managing $45 billion in assets, with a portfolio that includes over 90 companies operating in more than 70 countries.

Statistics:

  • Whiptail Midstream sold its San Juan Basin midstream business for $237 million.
  • The San Juan Basin midstream business was a critical component of Whiptail's growth and development, with extensive oil, gas, and water gathering systems.
  • I Squared Capital has managed assets worth $45 billion.
  • Whiptail Midstream's assets are spread across the midstream value chain, with extensive experience in oil, gas, and water gathering.

Sources:

  • Whiptail Midstream press release on Businesswire.com
  • About Whiptail Midstream
  • I Squared Capital website
  • About MPLX LP

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