Brazos Midstream Holdings, LLC (Brazos) has announced that its subsidiary, Brazos Delaware LLC, has completed an expansion of its senior credit facility to US$150 million in commitments from a syndicate of banks. Additionally, the facility has an accordion feature, which can expand total commitments to US$200 million. These funds support the ongoing expansion of Brazos' crude gathering and natural gas gathering and processing systems in the Southern Delaware Basin, one of the most active oil and gas producing basins in the US.
"Since inception, Brazos has been very intentional in our partnerships and we greatly appreciate the support from this group of hand-picked lenders," said Brazos Chief Financial Officer, William Butler. "This expanded credit facility, combined with our rapidly growing cash flow and equity capital available from Old Ironsides Energy, provides Brazos with ample liquidity to continue to prudently grow and execute future projects. We have an aggressive construction program underway which will further support our goal to be the best midstream partner to our producer customers."
Brazos' midstream investment is supported by long-term producer dedications covering over 200 000 acres in Ward, Reeves and Pecos counties (Texas). The company commenced operation of its 60 million ft3/d natural gas processing plant (Comanche I) in December 2016 and is currently constructing a second gas processing plant (Comanche II), which will add 200 million ft3/d of incremental processing capacity. Comanche II is expected to be operational during the first quarter of 2018. Brazos plans to further expand its 260 million ft3/d of operated processing capacity during 2018 to meet continued volume growth in the Delaware Basin.
BOK Financial and Cadence Bank served as joint lead arrangers of the facility which was syndicated to a total of nine banks. Other participants include ABN Amro, Amegy Bank, BBVA Compass, Iberia Bank, JP Morgan, Wells Fargo, and West Texas National Bank. Harris Finley Bogle provided legal counsel to Brazos and Thompson & Knight served as counsel to the lender group.
Read the article online at: https://www.worldpipelines.com/business-news/25072017/brazos-completes-credit-facility-and-gathering-systems-expansion/