(Energy Analytics Institute, 4.Dec.2024) — Producers Midstream II, LLC has secured an expanded $400mn credit facility led by Texas Capital Bank, Bank of Oklahoma, Cadence Bank, US Bank, and Wells Fargo Bank.
The credit facility will provide ample capacity to fund development projects across both their existing asset base in the Mid-Continent / Eastern Permian Basin and their growth projects in the Delaware Basin, Producers Midstream announced 4 Dec. 2024 in an official statement.
The upsized facility will support the completion of the company’s state-of-the-art gathering, treating, and processing system in Lea County, New Mexico while also providing room for further expansion to support operator activity in the immediate surrounding area, the company said.
Producers Midstream—a portfolio company of Tailwater Capital focused on providing a full suite of midstream solutions to operators across the US—has already kicked off engineering work to evaluate moving additional inventoried cryogenic plants into Lea County.
“With this facility, Producers Midstream is well-positioned to advance critical infrastructure projects and expand our operational presence in key regions, targeting increased drilling activity in the Bone Springs, Wolfcamp, and Penn Shale formations in the Delaware Basin, the Eastern Permian Basin, and the growing Cherokee / Red Fork formation in the Anadarko Basin,” Producers Midstream II CEO Matt Flory said in the statement.
“This milestone underscores our commitment to delivering innovative and reliable midstream solutions to meet the evolving needs of upstream operators,” Flory said.
The expanded credit facility strengthens Producers Midstream’s ability to execute its growth strategy, drive future expansion, and maintain its standing as a trusted midstream partner, the company said.
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