Enterprise Products Partners and Piñon Midstream, LLC, a portfolio company of Black Bay Energy Capital, reported that Enterprise’s affiliate has entered into a definitive agreement to acquire Piñon Midstream in a debt-free transaction for $950 million in cash consideration.
Piñon Midstream provides natural gas gathering and treating services in the core of the prolific eastern flank of the Delaware Basin in New Mexico and Texas.
Piñon Midstream’s assets include approximately 50 miles of natural gas gathering and redelivery pipelines, five 3-stage compressor stations, 270 mcf/d of existing H2S and CO2 treating facilities. An expansion to 450 mcf/d of capacity is expected to be completed in the second half of 2025, and two of the highest capacity and deepest acid gas injection wells in the basin. As part of this transaction, Enterprise is evaluating locations for a third injection well that would support up to 750 mcf/d of total treating capacity.
