NEW YORK – Morgan Stanley Energy Partners has completed the sale of Durango Permian LLC, a gas gathering and processing business, to Kinetik Holdings Inc. (NYSE: KNTK), the companies announced today. The deal includes a mix of cash and equity, with additional contingent consideration tied to the launch of the Kings Landing Gas Gathering and Processing Development.
Durango Permian, a subsidiary of Durango Midstream LLC and majority-owned by funds managed by Morgan Stanley Energy Partners, operates in the Permian Basin of southeast New Mexico. The business specializes in gas gathering, processing, and carbon dioxide sequestration.
Richard Cargile, President and CEO of Durango, expressed pride in the company’s growth and its potential synergies with Kinetik’s operations. “The Company’s assets are complementary to Kinetik’s existing operating footprint, expand Kinetik’s presence in New Mexico, and reinforce Kinetik’s value proposition as a pure-play midstream provider across the entire Delaware Basin,” Cargile said.
John Moon, Managing Director and Head of Morgan Stanley Energy Partners, highlighted Durango Permian’s transformation into a leading midstream platform under Cargile’s leadership. He also noted the anticipated growth opportunities in New Mexico through the partnership with Kinetik.
The transaction was advised by Greenhill (NYSE:) & Co. and Wells Fargo Securities, with Sidley Austin LLP providing legal counsel to Durango Midstream and Morgan Stanley Energy Partners.
The sale is expected to bring operational synergies and economies of scale to Kinetik, as well as stable earnings and significant growth potential with the commissioning of the Kings Landing project.
This move marks a new chapter for Durango Permian as it joins Kinetik, a company poised to leverage substantial growth opportunities in the region. The financial terms of the deal were not disclosed in the press release statement.
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