PE firms commit $300m to Oryx Midstream

The equity commitment will enable Oryx to build ‘much-needed’ infrastructure in the Delaware Basin in Texas and New Mexico.

Texas-based Oryx Midstream Services has received an equity commitment totaling up to $300 million from Quantum Energy Partners, Post Oak Energy Capital, Wells Fargo Energy Capital, Oryx management and other private investors, the midstream energy company said in a statement.

Oryx will pursue midstream opportunities in the Permian Basin but will focus initially on the Delaware Basin in Texas and New Mexico.

The company has signed long-term contracts with three exploration and production companies which have in turn dedicated 340,000 acres in New Mexico to Oryx.

In order to accommodate production, Oryx said it plans to build up to 60 miles of rich gas gathering pipeline and up to 80 miles of crude oil gathering pipeline in the Delaware Basin, which will serve production from multiple formations.

“Our goal is to leverage this anchor position as we work with producers to develop custom midstream solutions and build much-needed infrastructure in the Delaware Basin,” Oryx chief executive Brett Wiggs said, noting that the company expects to see substantial growth in this geographic area.

The midstream company focuses on developing midstream infrastructure in the Permian Basin.