Cardinal Midstream acquires Medallion’s natural gas assets in Texas

Medallion Midstream has a range of assets throughout the Midland Basin. (Map: Medallion Midstream.)

Cardinal Midstream Partners, a Dallas-based energy company, has closed its previously announced acquisition of Medallion Midstream Services’ natural gas business assets in the Delaware Basin in western Texas.

The acquired assets includes approximately 80 miles of high- and low-pressure natural gas-gathering pipelines that run through Reeves and Loving counties in Texas, as well as a natural gas facility that can process 140 million cu. ft. per day (MMcf/d). The companies did not disclose the purchase price or terms of the acquisition. 

“We are excited to have completed this transaction as it positions us for significant growth and future bolt-on opportunities in the heart of one of the most prolific basins in the United States,” said Cardinal CEO Doug Dormer. “We believe that clean burning natural gas will continue to play an important role in the energy mix, driving global demand, upstream production and accompanying midstream infrastructure. These assets are an ideal cornerstone for our business, and we look forward to meaningfully growing our footprint over time.”

Cardinal was founded in early 2022 as a portfolio company of EnCap Flatrock Midstream, a San Antonio-based firm that manages infrastructure opportunities and projects in North America.

“We are pleased to have completed this transaction as it allows us to enhance our focus on the continuing growth of Medallion’s crude oil gathering and transportation business, which serves its customers through a network of over 1,300 miles of pipeline spanning the Midland and southern Delaware Basins,” said Randy Lentz, Medallion’s CEO.

Medallion is an Irving, Texas based full service midstream provider specializing in the design, construction and operation of crude oil infrastructure in the Permian Basin. Medallion is a portfolio company of The Energy & Minerals Group.

The Energy & Minerals Group (EMG) is the management company for a series of specialized private equity funds. The firm was founded by John Raymond (majority owner and CEO) and John Calvert in 2006. EMG focuses on investing across various facets of the global natural resource industry including the upstream and midstream segments of the energy complex. EMG currently has approximately $14 billion of assets under management and approximately $12 billion in commitments have been allocated across the energy sector since inception.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, CompressorTech² News features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Latest News
Hydrogen import facility planned
GES, Provaris eyeing Port of Rotterdam