First Infrastructure to take controlling stake in Agua Blanca pipeline

First Infrastructure Capital Advisors has signed two separate deals to acquire 80% stake in the Agua Blanca pipeline, a natural gas residue pipeline in Texas which serves the Delaware Basin, for an undisclosed price.

Through the acquisition of WhiteWater Midstream from Denham Capital Management and Ridgemont Equity Partners, First Infrastructure Capital Advisors will take 60% stake in the natural gas residue pipeline.

Christer Rundlof – CEO of WhiteWater Midstream said: “We are very excited about our new partnership with First Infrastructure Capital, who provides us with access to strong construction and operations expertise and access to significant capital to continue to expand the Agua Blanca system and execute other projects under development.

“WhiteWater is committed to continuing to partner with shippers in the Delaware Basin. Our new sponsor has a long investment horizon that will allow us to continue to manage the asset for the long term.”

First Infrastructure to take 80% stake in Agua Blanca pipeline. Image courtesy of Stuart Miles/Freedigitalphotos.net.

The transaction is anticipated to be wrapped up in Q1 2019 subject to receipt of customary approvals and meeting of closing conditions.

The other 20% stake in the Agua Blanca pipeline for First Infrastructure Capital Advisors will be acquired from WPX Energy, which will continue to be one of the shippers of the natural gas residue pipeline.

MPLX and Targa, hold 10% stake each in the Texan pipeline system.

Commissioned in April 2018, the Agua Blanca pipeline system comprises approximately 90 miles of 36” diameter pipeline and 70 miles of smaller diameter pipeline, spanning parts of Culberson, Loving, Pecos, Reeves, Ward and Winkler counties.

The initial capacity of the Agua Blanca pipeline system is around 1.4 Bcf/d with plans to grow that further.

Dan Shapiro – Managing Partner of First Infrastructure Capital Advisors, commenting on the investment in Agua Blanca pipeline, said: “WhiteWater has created a unique cornerstone infrastructure asset that maximizes natural gas take-away options for producers in the Delaware Basin.

“We look forward to working closely with the team to invest significant capital in expansions of the Agua Blanca system, other natural gas residue, natural gas liquids, and complementary energy infrastructure projects.”