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- Trace Midstream Acquires LM Energy's Gas Assets in Delaware Basin
Trace Midstream Acquires LM Energy's Gas Assets in Delaware Basin
Slice of Energy Team
August 09, 2024
Key Highlights:
Trace Midstream Partners II, LLC acquires LM Energy's natural gas gathering and transportation assets in the Northern Delaware Basin.
LM Energy’s system includes 170 miles of pipelines and 12 compressor stations with a capacity of 650 million cubic feet per day.
The acquisition aims to expand midstream services and alleviate natural gas constraints in the region.
Source (Business Wire)
Notable Quotes:
“With substantial natural gas midstream constraints across the Northern Delaware, we are committed to expanding LM Energy’s assets and providing additional services for the region’s producers.”
“It was very important to us to find a successor who would continue to focus on customer service and facilitate our customers’ growth. Trace is an excellent team who we know will execute.”
“We are confident the commercial, operational, and project development capabilities of the Trace management team, combined with our financial support, will allow Trace to build a scalable natural gas infrastructure platform.”
Our Take:
The acquisition of LM Energy's natural gas assets by Trace Midstream Partners marks a pivotal expansion in the Northern Delaware Basin, underscoring the strategic importance of alleviating midstream constraints in this high-activity area. With Trace's proven track record and substantial backing from Quantum Capital Group, the enhanced infrastructure will undoubtedly provide critical support to regional producers, fostering growth and operational efficiency. This move signifies Trace’s commitment to building a robust midstream network, further solidifying its presence and influence in the North American energy sector.